DexCom Inc (DXCM)

Quick ratio

		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	US$ in thousands	606,100	621,200	939,200	851,200	566,300	643,700	1,194,900	623,200	642,300	698,100	735,400	716,000	1,052,600	1,444,300	1,158,800	733,800	817,600	673,500	530,000	584,600
Short-term investments	US$ in thousands	1,973,300	1,871,100	2,181,500	2,045,800	2,157,800	2,596,600	2,441,300	1,943,800	1,813,900	1,673,800	2,019,400	1,972,200	1,678,600	1,253,600	1,426,100	1,898,800	1,890,100	1,930,300	1,978,800	925,900
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	2,932,000	1,734,500	1,722,200	1,594,200	1,556,000	1,678,600	2,069,700	1,865,000	1,839,300	900,500	807,000	711,400	720,800	734,900	600,700	604,100	614,100	506,400	400,100	342,800
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

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 of DexCom Inc has shown a declining trend over the past few years, starting at a strong level of 4.41 as of March 31, 2020, and dropping to 0.88 as of December 31, 2024. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

The decreasing trend in DexCom Inc's quick ratio over time may raise concerns about its liquidity position and ability to meet short-term obligations without relying on inventory. It is important for investors and creditors to monitor this ratio closely as a decreasing quick ratio could indicate potential liquidity challenges for the company. The company may need to assess its cash management practices and working capital efficiency to improve its liquidity position and ensure it can meet its short-term financial commitments.