DexCom Inc (DXCM)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 606,100 566,300 642,300 1,052,600 817,600
Short-term investments US$ in thousands 1,973,300 2,157,800 1,813,900 1,678,600 1,890,100
Receivables US$ in thousands
Total current liabilities US$ in thousands 2,932,000 1,556,000 1,839,300 720,800 614,100
Quick ratio 0.88 1.75 1.34 3.79 4.41

December 31, 2024 calculation

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

The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term obligations with its most liquid assets. DexCom Inc's quick ratio has shown a declining trend over the years, from 4.41 on December 31, 2020, to 0.88 on December 31, 2024.

A higher quick ratio is generally preferred as it indicates that a company has an adequate level of liquid assets to cover its current liabilities. However, a quick ratio that is too high may also suggest that the company is not efficiently utilizing its assets.

DexCom Inc's quick ratio of 0.88 as of December 31, 2024, may raise concerns about its short-term liquidity position, as it indicates that the company may have limited ability to meet its immediate obligations using its quick assets alone. It would be important to further investigate the reasons behind this decrease and assess the overall liquidity risk facing the company.


See also:

DexCom Inc Quick Ratio