DexCom Inc (DXCM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 61.14% | 63.19% | 64.72% | 68.63% | 66.44% |
| Operating profit margin | 14.88% | 16.50% | 13.44% | 7.16% | 15.54% |
| Pretax margin | 17.58% | 19.61% | 13.43% | 7.10% | 11.68% |
| Net profit margin | 14.29% | 14.95% | 11.73% | 6.32% | 25.62% |
The gross profit margin of DexCom Inc has shown a fluctuating trend over the past five years, starting at 66.44% in December 31, 2020, increasing to 68.63% by December 31, 2021, but then declining to 61.14% by December 31, 2024. This indicates the company's ability to generate revenue from its core operations after deducting the cost of goods sold.
In terms of operating profit margin, DexCom Inc experienced a significant drop from 15.54% in December 31, 2020, to 7.16% in December 31, 2021, before showing some recovery in the following years, reaching 14.88% by December 31, 2024. This metric reveals the company's efficiency in managing its operating expenses relative to its revenue.
The pretax margin of DexCom Inc also varied during the period under review, starting at 11.68% in December 31, 2020, and fluctuating before reaching 17.58% by December 31, 2024. This ratio indicates the proportion of profit the company retains from its revenue before paying taxes.
Finally, the net profit margin of DexCom Inc had a substantial decrease from 25.62% in December 31, 2020, to 6.32% in December 31, 2021, before gradually increasing to 14.29% by December 31, 2024. This metric represents the company's overall profitability after all expenses, including taxes, have been deducted.
Overall, DexCom Inc has shown varying profitability margins over the past five years, with fluctuations in its gross, operating, pretax, and net profit margins. It is essential for investors and stakeholders to consider these ratios collectively to assess the company's financial performance and sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.25% | 9.54% | 7.26% | 3.61% | 6.98% |
| Return on assets (ROA) | 8.89% | 8.64% | 6.33% | 3.18% | 11.50% |
| Return on total capital | 29.63% | 35.32% | 19.20% | 12.24% | 16.96% |
| Return on equity (ROE) | 27.40% | 26.18% | 16.01% | 6.87% | 27.02% |
Based on the provided data, DexCom Inc's profitability ratios have shown some fluctuations over the years.
- Operating return on assets (Operating ROA) has varied, with a notable increase from 2021 to 2023, before experiencing a slight decrease in 2024. This ratio indicates the company's ability to generate operating income from its assets.
- Return on assets (ROA) declined significantly in 2021 compared to 2020, followed by an upward trend in the following years. This ratio reflects the company's overall efficiency in generating profits from its total assets.
- Return on total capital exhibited fluctuations with a substantial increase in 2023, implying that the company effectively utilizes its total capital to generate profits.
- Return on equity (ROE) also displayed fluctuations, witnessing a sharp decrease in 2021 before gradually improving in subsequent years. ROE reflects the return generated for the company's shareholders based on their equity investments.
Overall, DexCom Inc's profitability ratios have shown mixed performance, with improvements in certain ratios over the years indicating the company's efforts to enhance profitability and efficiency. Further analysis of the company's financial statements and operating performance would provide a more comprehensive understanding of its financial health.