DexCom Inc (DXCM)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	541,500	341,200	216,900	549,700	101,100
Total stockholders’ equity	US$ in thousands	2,068,600	2,131,800	2,042,100	1,551,900	882,600
ROE		26.18%	16.01%	10.62%	35.42%	11.45%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $541,500K ÷ $2,068,600K
= 26.18%

Dexcom Inc's return on equity (ROE) has exhibited fluctuations over the past five years. The ROE was at its highest in 2020, reaching 27.02%, indicating that the company generated $0.27 in net income for every dollar of equity during that year. However, there was a notable decline in 2021, with an ROE of 6.87%, suggesting a decrease in profitability relative to the equity invested. Subsequently, there was a significant improvement in 2022, with ROE increasing to 16.01%, signifying enhanced profitability. The most recent data for 2023 shows a further increase in ROE to 26.18%, indicating a continued positive trend in generating higher returns on equity for the shareholders. Overall, while there have been fluctuations in Dexcom Inc's ROE, the recent improvement suggests better utilization of equity to generate profits compared to previous years.