DexCom Inc (DXCM)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	2,465,700	2,288,900	1,883,100	1,680,500	1,280,100
Revenue	US$ in thousands	4,033,000	3,622,300	2,909,800	2,448,500	1,926,700
Gross profit margin		61.14%	63.19%	64.72%	68.63%	66.44%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,465,700K ÷ $4,033,000K
= 61.14%

Based on the provided data, DexCom Inc's gross profit margin has shown a decreasing trend over the years. The gross profit margin was 66.44% as of December 31, 2020, which increased to 68.63% by December 31, 2021. However, in the following years, there was a consistent decline in the gross profit margin, dropping to 64.72% by December 31, 2022, further declining to 63.19% by December 31, 2023, and reaching 61.14% by December 31, 2024.

This downward trend in gross profit margin indicates that DexCom Inc may be facing challenges in maintaining profitability on its core operations. It could be due to various factors such as increased costs, pricing pressures, or changes in sales mix. Management should closely monitor and address the underlying reasons for this decline to sustain and enhance the company's profitability in the future.