DexCom Inc (DXCM)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	576,200	680,800	666,900	639,300	541,500	377,000	357,500	292,500	341,200	230,000	199,700	211,700	154,700	529,300	530,600	514,000	493,600	231,100	204,700	147,900
Total stockholders’ equity	US$ in thousands	2,102,600	1,979,000	2,434,300	2,246,800	2,068,600	2,267,900	2,100,400	2,233,000	2,131,800	1,824,500	2,255,900	2,189,300	2,251,500	2,136,100	1,997,600	1,903,200	1,826,500	1,499,300	1,353,900	934,500
ROE		27.40%	34.40%	27.40%	28.45%	26.18%	16.62%	17.02%	13.10%	16.01%	12.61%	8.85%	9.67%	6.87%	24.78%	26.56%	27.01%	27.02%	15.41%	15.12%	15.83%

December 31, 2024 calculation

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

DexCom Inc's return on equity (ROE) has shown fluctuations over the past few years. The ROE was relatively stable around the 15% range from March 2020 to September 2021, indicating consistent profitability in relation to shareholders' equity during this period.

However, there was a significant increase in ROE to 27.02% by December 2020, and this higher ROE level was sustained through March 2021 at 27.01% and June 2021 at 26.56%. This surge in ROE may suggest improved efficiency in generating profits from shareholders' equity.

Subsequently, DexCom Inc experienced a decline in ROE starting from December 2021 at 6.87%, reaching its lowest point in June 2022 at 8.85%. This decrease could indicate challenges in maintaining profitability levels relative to shareholder investment.

However, there was a rebound in ROE from September 2022 to September 2024, with the ratio steadily increasing from 12.61% to 34.40%. This improvement in ROE demonstrates the company's ability to generate higher returns on equity, reflecting enhanced profitability and efficient utilization of shareholder funds.

Overall, DexCom Inc's ROE performance has displayed variability over the analyzed period, with fluctuations reflecting changes in profitability and efficiency in utilizing shareholder funds. Investors and financial analysts may consider monitoring future ROE trends to assess the company's financial performance and sustainability.