DexCom Inc (DXCM)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	606,100	621,200	939,200	851,200	566,300	643,700	1,194,900	623,200	642,300	698,100	735,400	716,000	1,052,600	1,444,300	1,158,800	733,800	817,600	673,500	530,000	584,600
Short-term investments	US$ in thousands	1,973,300	1,871,100	2,181,500	2,045,800	2,157,800	2,596,600	2,441,300	1,943,800	1,813,900	1,673,800	2,019,400	1,972,200	1,678,600	1,253,600	1,426,100	1,898,800	1,890,100	1,930,300	1,978,800	925,900
Total current liabilities	US$ in thousands	2,932,000	1,734,500	1,722,200	1,594,200	1,556,000	1,678,600	2,069,700	1,865,000	1,839,300	900,500	807,000	711,400	720,800	734,900	600,700	604,100	614,100	506,400	400,100	342,800
Cash ratio		0.88	1.44	1.81	1.82	1.75	1.93	1.76	1.38	1.34	2.63	3.41	3.78	3.79	3.67	4.30	4.36	4.41	5.14	6.27	4.41

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($606,100K + $1,973,300K) ÷ $2,932,000K
= 0.88

The cash ratio of DexCom Inc has shown a gradual decline from 6.27 in June 30, 2020 to 0.88 in December 31, 2024. This indicates that the company may have decreased liquidity over this period, as the cash ratio measures the ability of a company to cover its short-term liabilities with its cash and cash equivalents. A decreasing trend in the cash ratio could signal potential financial risk, as the company may have less available cash to meet its immediate obligations. Management should closely monitor the trend in the cash ratio and take necessary steps to strengthen the company's liquidity position.