DexCom Inc (DXCM)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	597,700	391,200	265,800	299,500	142,300
Revenue	US$ in thousands	3,603,200	2,889,200	2,333,800	1,822,500	1,396,800
Operating profit margin		16.59%	13.54%	11.39%	16.43%	10.19%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $597,700K ÷ $3,603,200K
= 16.59%

The operating profit margin of Dexcom Inc has shown a fluctuating trend over the past five years. The margin has generally been on an increasing trajectory from 2019 to 2020, reaching its peak at 15.54% in 2020. However, there was a slight dip in 2021 followed by a notable increase in 2022 and 2023.

The operating profit margin for Dec 31, 2023, stood at 16.55%, indicating that for every dollar of revenue generated, the company is retaining approximately 16.55 cents as operating profit. This improvement suggests efficient cost management and increased profitability, reflecting positively on the company's operational performance.

It is essential for Dexcom Inc to sustain this positive momentum in managing operating expenses effectively while continuing to generate strong revenues to maintain and potentially further enhance its operating profit margin in the future.