DexCom Inc (DXCM)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	566,300	642,300	1,052,600	817,600	446,200
Short-term investments	US$ in thousands	2,160,000	1,810,000	1,360,000	1,890,100	1,087,100
Receivables	US$ in thousands	987,500	752,200	514,300	428,500	286,300
Total current liabilities	US$ in thousands	1,556,000	1,839,300	720,800	614,100	360,200
Quick ratio		2.39	1.74	4.06	5.11	5.05

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($566,300K + $2,160,000K + $987,500K) ÷ $1,556,000K
= 2.39

The quick ratio of Dexcom Inc has shown fluctuations over the past five years. In 2023, the quick ratio stands at 2.48, indicating that the company has $2.48 in liquid assets available to cover each dollar of current liabilities. This represents an improvement compared to 2022 when the quick ratio was 1.83.

The quick ratio was significantly higher in 2021 at 4.62, reflecting a strong ability to meet short-term obligations using liquid assets. In 2020 and 2019, the quick ratios were 5.19 and 5.13 respectively, demonstrating consistent high liquidity levels over those years.

Overall, the quick ratio of Dexcom Inc has fluctuated but has generally remained at healthy levels, suggesting the company's ability to meet its short-term financial obligations using its liquid assets. However, a decreasing trend in recent years warrants further monitoring to ensure continued liquidity strength.