DexCom Inc (DXCM)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.47 | 2.46 | 2.82 | 2.90 | 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 |
| Quick 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 |
| 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 |
The current ratio of DexCom Inc has shown some fluctuation over the years, indicating the company's ability to meet its short-term obligations with its current assets. The ratio ranged from a high of 7.58 on June 30, 2020, to a low of 1.47 on December 31, 2024. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, demonstrating good liquidity. However, a declining trend in the current ratio towards the end of the period may signal potential liquidity challenges.
The quick ratio, which measures the company's ability to meet its short-term obligations without relying on inventory, follows a similar pattern to the current ratio. This ratio also experienced fluctuations, with the highest value of 6.27 on June 30, 2020, and the lowest value of 0.88 on December 31, 2024. The company's quick ratio above 1 indicates its ability to cover its current liabilities with its most liquid assets, such as cash and marketable securities.
The cash ratio, which specifically focuses on the company's ability to cover its current liabilities using only its cash and cash equivalents, mirrors the trends observed in the current and quick ratios. The ratio ranged from a high of 6.27 on June 30, 2020, to a low of 0.88 on December 31, 2024, showing fluctuations similar to the other liquidity ratios. This indicates that DexCom Inc has had varying levels of cash reserves relative to its current liabilities over the years.
Overall, while DexCom Inc demonstrated strong liquidity positions in the earlier years with current, quick, and cash ratios well above industry norms, the declining trend towards the end of the period raises some concerns about the company's ability to meet its short-term obligations with its current assets, particularly cash. Further analysis and monitoring of the company's liquidity position would be recommended to assess its financial health accurately.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 124.04 | 141.25 | 141.96 | 152.11 | 153.18 | 148.03 | 133.29 | 124.28 | 109.03 | 116.02 | 136.73 | 149.12 | 169.81 | 180.04 | 174.10 | 160.43 | 132.49 | 116.22 | 97.44 | 89.08 |
The cash conversion cycle of DexCom Inc, a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
The cash conversion cycle increased gradually from 89.08 days on March 31, 2020, to a peak of 180.04 days on September 30, 2021. This increase indicates that the company took longer to convert its investments into cash during this period.
However, the cash conversion cycle then started to decrease, reaching a low of 109.03 days on December 31, 2022. This reduction suggests that DexCom Inc improved its efficiency in managing its working capital and converting investments into cash.
Subsequently, there were fluctuations in the cash conversion cycle, with slight increases and decreases observed until December 31, 2024, where it stood at 124.04 days. This indicates that DexCom Inc may have made some adjustments in its operations impacting the timing of cash flows from its operating cycle.
Overall, monitoring the cash conversion cycle of DexCom Inc provides insights into the company's efficiency in managing its working capital and converting investments into cash, which can be crucial for assessing its financial health and operational performance.