DexCom Inc (DXCM)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	730,700	409,400	275,600	315,600	164,500
Long-term debt	US$ in thousands	2,434,200	1,197,700	1,702,700	1,667,200	1,059,700
Total stockholders’ equity	US$ in thousands	2,068,600	2,131,800	2,042,100	1,551,900	882,600
Return on total capital		16.23%	12.30%	7.36%	9.80%	8.47%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $730,700K ÷ ($2,434,200K + $2,068,600K)
= 16.23%

The return on total capital for Dexcom Inc has shown a positive trend over the past five years, increasing from 7.06% in 2019 to 13.15% in 2023. This indicates that the company has been able to generate more profits relative to its total capital employed in recent years. The significant improvement in the return on total capital from 2022 to 2023 suggests that Dexcom Inc's efficiency in utilizing its capital has increased notably, potentially reflecting strong operational performance or effective capital allocation strategies. Overall, the upward trajectory of the return on total capital is a positive indication of the company's ability to generate returns for its invested capital.