DexCom Inc (DXCM)

Net profit margin

		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
Net income (ttm)	US$ in thousands	576,200	680,800	666,900	639,300	541,500	377,000	357,500	292,500	341,200	230,000	199,700	211,700	154,700	529,300	530,600	514,000	493,600	231,100	204,700	147,900
Revenue (ttm)	US$ in thousands	4,033,000	3,954,000	3,934,800	3,801,800	3,622,300	3,403,000	3,197,600	3,022,500	2,909,800	2,792,800	2,673,400	2,572,300	2,448,500	2,319,200	2,169,900	2,026,600	1,926,700	1,820,600	1,716,000	1,600,600
Net profit margin		14.29%	17.22%	16.95%	16.82%	14.95%	11.08%	11.18%	9.68%	11.73%	8.24%	7.47%	8.23%	6.32%	22.82%	24.45%	25.36%	25.62%	12.69%	11.93%	9.24%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $576,200K ÷ $4,033,000K
= 14.29%

Net profit margin is a key financial ratio that indicates the percentage of revenue that translates into net income after accounting for all expenses. DexCom Inc's net profit margin has shown fluctuations over the period under review.

The net profit margin stood at 9.24% as of March 31, 2020, and increased steadily to reach a peak of 25.62% by December 31, 2020. This significant improvement in profitability may have been driven by effective cost management or revenue growth outpacing expenses.

However, there was a marked decline in the net profit margin in the subsequent quarters, dropping to 6.32% by December 31, 2021, indicating a decrease in the company's ability to convert revenues into profits. This decline could be attributed to various factors such as increased expenses or a slowdown in revenue growth.

Subsequently, DexCom Inc's net profit margin showed fluctuations within the range of 6.32% to 17.22% until December 31, 2024, where it settled at 14.29%. These fluctuations suggest a level of volatility in the company's profitability over the analyzed period.

Overall, DexCom Inc's net profit margin experienced both peaks and troughs, indicating fluctuations in its profitability performance. Further analysis of the company's financial and operational metrics would be needed to understand the factors driving these trends and to assess the sustainability of its profitability levels.