DexCom Inc (DXCM)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	6,484,500	6,264,500	5,391,700	4,863,600	4,290,500
Total stockholders’ equity	US$ in thousands	2,102,600	2,068,600	2,131,800	2,251,500	1,826,500
Financial leverage ratio		3.08	3.03	2.53	2.16	2.35

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,484,500K ÷ $2,102,600K
= 3.08

The financial leverage ratio for DexCom Inc has shown fluctuations over the past five years. As of December 31, 2020, the ratio was 2.35, indicating that the company's debt levels were 2.35 times its equity. By the end of 2021, the ratio decreased to 2.16, suggesting a slight improvement in the company's leverage position.

However, in the following years, the financial leverage ratio increased significantly. By December 31, 2022, the ratio rose to 2.53, and further increased to 3.03 by the end of 2023. This upward trend continued, reaching 3.08 as of December 31, 2024.

The increasing trend in the financial leverage ratio suggests that DexCom Inc may be relying more on debt financing relative to equity financing in recent years. Higher financial leverage ratios indicate higher levels of financial risk and potential vulnerability to economic downturns or interest rate fluctuations.

It is important for investors and analysts to closely monitor the financial leverage ratio of DexCom Inc to assess the company's ability to meet its debt obligations and manage its overall financial health effectively.