DexCom Inc (DXCM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 698,900 | 762,900 | 826,100 | 798,700 | 730,700 | 617,500 | 523,000 | 437,800 | 409,400 | 282,000 | 249,500 | 271,400 | 276,700 | 372,100 | 353,300 | 317,900 | 309,700 | 313,400 | 274,800 | 214,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 33.24% | 38.55% | 33.94% | 35.55% | 35.32% | 27.23% | 24.90% | 19.61% | 19.20% | 15.46% | 11.06% | 12.40% | 12.29% | 17.42% | 17.69% | 16.70% | 16.96% | 20.90% | 20.30% | 22.90% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $698,900K ÷ ($—K + $2,102,600K)
= 33.24%
The return on total capital of DexCom Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 22.90% in March 2020, declining to 16.96% by the end of December 2020. Subsequently, there was a slight increase to 17.69% in June 2021 before dropping to 12.29% by December 2021. The trend reversed in the following periods, with an improvement to 35.32% by December 2023 and 38.55% by September 2024. However, by the end of December 2024, the return on total capital decreased to 33.24%.
Overall, the company's return on total capital has experienced variability, indicating fluctuations in the efficient utilization of both equity and debt in generating profits. Investors and stakeholders may want to assess the reasons behind these fluctuations to make informed decisions regarding DexCom Inc's financial performance and capital allocation strategies.
Peer comparison
Dec 31, 2024