DexCom Inc (DXCM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.52% | 65.18% | 72.01% | 70.24% | 66.69% |
| Operating profit margin | 16.59% | 13.54% | 11.39% | 16.43% | 10.19% |
| Pretax margin | 19.72% | 13.53% | 11.00% | 16.35% | 7.46% |
| Net profit margin | 15.03% | 11.81% | 9.29% | 30.16% | 7.24% |
Dexcom Inc's profitability ratios have shown variations over the past five years. The gross profit margin has gradually decreased from 68.63% in 2021 to 63.19% in 2023. This indicates that the company's cost of goods sold has been increasing relative to its revenue.
The operating profit margin has fluctuated, reaching its highest level in 2023 at 16.55%, indicating the company's ability to control operating expenses and generate profits from its core operations. The pretax margin has also shown fluctuations, with a notable increase to 19.61% in 2023, suggesting improved efficiency in managing taxes and operating costs.
The net profit margin, reflecting the company's bottom line profitability, has been volatile over the years, with a significant increase to 25.62% in 2020 followed by declines in subsequent years. This could be attributed to factors such as changes in pricing strategies, operating costs, or one-time events impacting profitability.
Overall, while Dexcom Inc's gross profit margin has declined, the operating profit margin and pretax margin have shown improvements in recent years, albeit with fluctuations. The net profit margin, however, has been more variable, indicating the company's changing profitability dynamics. Further analysis of the underlying factors affecting these ratios would provide greater insights into Dexcom Inc's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.54% | 7.26% | 5.39% | 6.98% | 5.94% |
| Return on assets (ROA) | 8.64% | 6.33% | 4.40% | 12.81% | 4.22% |
| Return on total capital | 16.23% | 12.30% | 7.36% | 9.80% | 8.47% |
| Return on equity (ROE) | 26.18% | 16.01% | 10.62% | 35.42% | 11.45% |
Dexcom Inc's profitability ratios have shown a positive trend in recent years.
1. Operating return on assets (Operating ROA) indicates the company's ability to generate profits from its operations relative to its total assets. Dexcom's Operating ROA has increased steadily from 5.77% in 2019 to 9.57% in 2023, reflecting improving operational efficiency.
2. Return on assets (ROA) measures the overall profitability of the company relative to its total assets. Dexcom's ROA has also shown a positive trend, reaching 8.64% in 2023, indicating that the company is effectively utilizing its assets to generate profits.
3. Return on total capital indicates the return generated from both equity and debt capital invested in the company. Dexcom's return on total capital has increased from 7.06% in 2019 to 13.15% in 2023, indicating that the company is delivering better returns to its providers of capital.
4. Return on equity (ROE) measures the profitability generated for the shareholders. Dexcom's ROE has demonstrated significant improvement, increasing from 11.45% in 2019 to 26.18% in 2023, indicating that the company is generating higher returns for its shareholders.
Overall, Dexcom Inc's profitability ratios depict a positive trend, showcasing the company's efficiency in generating profits from its operations and utilizing its assets and capital effectively.