DexCom Inc (DXCM)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.84 | 2.80 | 2.42 | 2.02 | 1.99 | 3.77 | 4.72 | 5.27 | 5.11 | 4.98 | 5.78 | 5.70 | 5.58 | 6.39 | 7.58 | 5.82 | 5.47 | 5.63 | 6.05 | 7.18 |
| Quick ratio | 2.39 | 2.40 | 2.12 | 1.72 | 1.74 | 3.29 | 4.17 | 4.40 | 4.06 | 4.16 | 5.11 | 5.09 | 5.11 | 5.87 | 7.01 | 5.28 | 5.05 | 5.16 | 5.53 | 6.64 |
| Cash ratio | 1.75 | 1.93 | 1.76 | 1.37 | 1.33 | 2.63 | 3.41 | 3.64 | 3.35 | 3.44 | 4.30 | 4.36 | 4.41 | 5.14 | 6.27 | 4.41 | 4.26 | 4.44 | 4.78 | 5.77 |
Dexcom Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has been showing a generally upward trend over the quarters, with Q4 2023 standing at 2.84. This suggests that Dexcom has a healthy level of current assets to meet its short-term liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been relatively stable at a high level. In Q4 2023, the quick ratio was 2.48, indicating that Dexcom has a strong ability to cover its short-term obligations even without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents to cover current liabilities, has shown variability but remains at a healthy level. In Q4 2023, the cash ratio was 1.84, suggesting that Dexcom has sufficient cash on hand to meet its immediate liabilities.
Overall, Dexcom's liquidity ratios demonstrate that the company has a strong financial position with ample liquidity to meet its short-term obligations. The consistent or improving trends in these ratios indicate a stable and well-managed liquidity position, which is crucial for the company's operations and financial health.
See also:
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 140.83 | 123.37 | 110.77 | 95.95 | 107.16 | 100.93 | 110.01 | 121.83 | 117.64 | 122.72 | 126.27 | 122.54 | 106.28 | 92.96 | 83.00 | 80.80 | 79.22 | 72.75 | 75.94 | 73.46 |
The cash conversion cycle of Dexcom Inc has shown fluctuations over the past eight quarters, ranging from a high of 177.03 days in Q4 2023 to a low of 112.69 days in Q1 2023. This metric indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle suggests that Dexcom may be facing challenges in managing its working capital efficiently, potentially leading to increased financing costs or liquidity constraints. On the other hand, a shorter cycle implies more effective management of inventory and receivables, allowing the company to generate cash more quickly from its operations. Overall, Dexcom should continue to monitor and strive to optimize its cash conversion cycle to improve its cash flow management and financial performance.