DexCom Inc (DXCM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.08 | 3.03 | 2.53 | 2.16 | 2.35 |
DexCom Inc has consistently maintained a strong solvency position over the years, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all reported years (from 2020 to 2024). This suggests that the company has minimal debt obligations relative to its total assets, capital structure, and equity levels.
However, the financial leverage ratio has shown an increasing trend over the years, from 2.35 in 2020 to 3.08 in 2024. This indicates that DexCom Inc has been relying more on debt financing to support its operations and growth, leading to a higher level of financial leverage. While the absolute value of the financial leverage ratio may not be alarming, the increasing trend should be monitored closely to ensure that the company's ability to meet its debt obligations remains sustainable in the long term.
Overall, DexCom Inc's solvency ratios reflect a healthy balance sheet structure with minimal debt levels, but the increasing financial leverage ratio warrants attention to ensure continued financial stability and liquidity.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 32.79 | 36.00 | 22.01 | 2.70 | 3.66 |
The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. In the case of DexCom Inc, the trend in the interest coverage ratio over the past five years shows some fluctuations.
As of December 31, 2020, DexCom Inc had an interest coverage ratio of 3.66, indicating that the company's operating income was able to cover its interest expenses 3.66 times over. However, this ratio decreased to 2.70 as of December 31, 2021, which could suggest a potential strain on the company's ability to meet its interest obligations.
The interest coverage ratio saw a significant improvement in the following years, with ratios of 22.01, 36.00, and 32.79 as of December 31, 2022, 2023, and 2024, respectively. These high ratios indicate that DexCom Inc's operating income more than comfortably covers its interest expenses during these periods.
Overall, the trend in DexCom Inc's interest coverage ratio demonstrates some fluctuations, but the company has shown a strong ability to cover its interest obligations in recent years, with a notable improvement in coverage in the latter years of the analyzed period.