DexCom Inc (DXCM)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	4,301,400	4,425,900	3,668,800	3,684,400	3,424,800
Total current liabilities	US$ in thousands	2,932,000	1,556,000	1,839,300	720,800	614,100
Current ratio		1.47	2.84	1.99	5.11	5.58

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,301,400K ÷ $2,932,000K
= 1.47

The current ratio of DexCom Inc has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was at a healthy level of 5.58, indicating that the company had more than enough current assets to cover its current liabilities. However, by December 31, 2021, the ratio decreased to 5.11, still above the desirable threshold of 2, but showing a slight deterioration.

Subsequently, by December 31, 2022, there was a significant decline in the current ratio to 1.99, which may raise concerns about the company's ability to meet its short-term obligations using its current assets alone. However, the ratio improved by December 31, 2023, reaching 2.84, indicating a better liquidity position compared to the previous year.

By December 31, 2024, the current ratio dropped to 1.47, falling below the ideal level of 2, which could suggest potential liquidity challenges for DexCom Inc in the short term. It is essential for the company to closely monitor its current assets and liabilities to ensure it can meet its financial obligations efficiently and effectively.