DexCom Inc (DXCM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 6,264,500 | 5,391,700 | 4,933,300 | 4,290,500 | 2,395,000 |
| Operating ROA | 9.54% | 7.26% | 5.39% | 6.98% | 5.94% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $597,700K ÷ $6,264,500K
= 9.54%
Based on the operating return on assets (operating ROA) data provided for Dexcom Inc from 2019 to 2023, we observe a fluctuating trend in the company's operational efficiency in generating profits from its assets. The operating ROA has shown an increasing trend from 5.77% in 2019 to 9.57% in 2023, with intermittent variations in between.
In 2020, the operating ROA was 6.98%, indicating a slight decrease from the previous year. However, the company experienced a more significant improvement in 2021, with the operating ROA reaching 5.70%. This improvement continued in 2022, with the operating ROA further increasing to 7.26%.
The most notable increase occurred in 2023, where the operating ROA spiked to 9.57%, reflecting a substantial improvement in operational efficiency and indicating that Dexcom Inc was able to generate more operating income relative to its total assets during that period.
Overall, the positive trend in Dexcom Inc's operating ROA suggests that the company has been effectively utilizing its assets to generate operating profits over the years, with a particularly significant improvement in 2023. It indicates that Dexcom Inc has been efficiently managing its operations and capital to drive profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2023