DexCom Inc (DXCM)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	576,200	541,500	341,200	154,700	493,600
Total stockholders’ equity	US$ in thousands	2,102,600	2,068,600	2,131,800	2,251,500	1,826,500
ROE		27.40%	26.18%	16.01%	6.87%	27.02%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $576,200K ÷ $2,102,600K
= 27.40%

DexCom Inc's return on equity (ROE) has exhibited fluctuations over the past five years. As of December 31, 2020, the ROE stood at a robust 27.02%, reflecting strong profitability relative to shareholders' equity. However, there was a notable decline in ROE to 6.87% by the end of December 31, 2021, indicating a decrease in the company's ability to generate profits from equity.

Subsequently, DexCom Inc saw an improvement in ROE to 16.01% by December 31, 2022, suggesting a partial recovery in profitability. The trend continued with a further increase in ROE to 26.18% by December 31, 2023, indicating a significant improvement in the company's profitability compared to the previous year.

By the end of December 31, 2024, DexCom Inc's ROE reached 27.40%, surpassing the ROE recorded in 2020, signaling a return to higher levels of profitability relative to shareholders' equity. Overall, the fluctuating trend in ROE over the years indicates varying levels of profitability and efficiency in utilizing equity in generating returns for shareholders.