DexCom Inc (DXCM)

Return on total capital

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 730,700 617,500 523,000 437,800 409,400 282,600 248,400 270,300 275,600 376,300 359,200 323,800 315,600 313,400 274,800 214,000 164,500 -113,800 -125,000 -96,300
Long-term debt US$ in thousands 2,434,200 2,432,400 2,430,600 1,198,500 1,197,700 1,968,800 1,967,300 1,965,900 1,702,700 1,703,500 1,710,700 1,688,800 1,667,200 1,645,800 1,658,800 1,072,400 1,059,700 1,047,100 1,034,700 1,022,400
Total stockholders’ equity US$ in thousands 2,068,600 2,267,900 2,100,400 2,233,000 2,131,800 1,824,500 2,255,900 2,189,300 2,042,100 1,912,000 1,754,700 1,644,800 1,551,900 1,499,300 1,353,900 934,500 882,600 764,300 688,300 668,600
Return on total capital 16.23% 13.14% 11.54% 12.76% 12.30% 7.45% 5.88% 6.51% 7.36% 10.41% 10.37% 9.71% 9.80% 9.96% 9.12% 10.66% 8.47% -6.28% -7.25% -5.69%

December 31, 2023 calculation

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

Over the past eight quarters, Dexcom Inc's return on total capital has shown a generally positive trend, with fluctuations. The return on total capital has ranged from 5.86% to 13.15%. The highest return was in Q4 2023 at 13.15%, demonstrating the company's ability to generate profits relative to its total capital employed. It was followed by Q3 2023 at 10.39%. This indicates that Dexcom Inc has been effectively utilizing its capital investment to generate returns for its stakeholders. However, there were slight decreases in Q2 2023 and Q1 2023 compared to the previous quarters. The consistency of positive returns over the quarters reflects Dexcom Inc's efficiency in deploying its capital to generate profits.