DexCom Inc (DXCM)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	600,000	597,700	391,200	175,400	299,500
Revenue	US$ in thousands	4,033,000	3,622,300	2,909,800	2,448,500	1,926,700
Operating profit margin		14.88%	16.50%	13.44%	7.16%	15.54%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $600,000K ÷ $4,033,000K
= 14.88%

Based on the data provided, DexCom Inc's operating profit margin has fluctuated over the past five years. In December 31, 2020, the company's operating profit margin was at 15.54%, indicating that DexCom was generating a profit of $0.1554 for each dollar of sales after accounting for operating expenses.

However, there was a decline in operating profit margin in December 31, 2021, dropping to 7.16%. This could be a result of increased operating expenses relative to revenues or a decrease in sales.

In December 31, 2022, DexCom saw an improvement in its operating profit margin to 13.44%, showing that the company was able to better control its operating expenses or increase its revenue generation.

The trend continued positively in December 31, 2023, with the operating profit margin increasing to 16.50%, indicating that DexCom was effectively managing its costs and/or experiencing growth in sales.

In the most recent year, December 31, 2024, the operating profit margin slightly decreased to 14.88%, which, although lower than the previous year, still remains relatively healthy.

Overall, DexCom Inc's operating profit margin has shown variability over the years, with some fluctuations, but it has generally remained at levels that demonstrate the company's ability to generate profit from its core operations. Monitoring this ratio will continue to be important for assessing the company's operational efficiency and profitability.