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.