DexCom Inc (DXCM)

Quick ratio

		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	US$ in thousands	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	446,200	395,600	709,200	1,285,100
Short-term investments	US$ in thousands	2,160,000	2,600,000	2,440,000	1,940,000	1,810,000	1,670,000	2,019,400	1,873,000	1,360,000	1,083,700	1,426,100	1,898,800	1,890,100	1,930,300	1,978,800	925,900	1,087,100	1,034,300	668,300	72,900
Receivables	US$ in thousands	987,500	788,500	755,600	652,500	752,200	597,100	612,000	544,500	514,300	529,100	483,500	443,400	428,500	370,000	296,500	300,700	286,300	234,900	217,300	204,700
Total current liabilities	US$ in thousands	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	360,200	322,400	288,200	235,400
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

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 some fluctuations over the past eight quarters. In Q4 2023 and Q3 2023, the quick ratio stood at 2.48 and 2.49 respectively, indicating the company's ability to cover its current liabilities with highly liquid assets. This suggests a relatively strong liquidity position during these periods.

However, in Q2 2023 and Q1 2023, the quick ratio declined to 2.21 and 1.82, which may raise some concerns about the company's short-term liquidity ability. The decrease in the ratio could be attributed to various factors such as changes in current assets or liabilities composition.

Comparing these figures with the quick ratios in the previous quarters, we see a significant decline from Q2 2022 (4.30) and Q1 2022 (4.79). This indicates a substantial decrease in liquidity over time, potentially signaling a shift in the company's financial position or strategy.

Overall, while Dexcom Inc has maintained a relatively healthy quick ratio in recent quarters, it is essential for stakeholders to closely monitor any further fluctuations in this ratio to assess the company's short-term liquidity position.