DexCom Inc (DXCM)

Financial leverage ratio

		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
Total assets	US$ in thousands	6,484,500	6,353,800	6,799,200	6,482,200	6,264,500	6,596,200	6,820,700	5,515,900	5,391,700	4,899,200	5,217,400	5,057,000	4,863,600	4,775,900	4,503,800	4,389,800	4,290,500	3,833,200	3,521,800	2,447,900
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
Financial leverage ratio		3.08	3.21	2.79	2.89	3.03	2.91	3.25	2.47	2.53	2.69	2.31	2.31	2.16	2.24	2.25	2.31	2.35	2.56	2.60	2.62

December 31, 2024 calculation

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

The financial leverage ratio of DexCom Inc has shown fluctuations over the past few years, ranging from 2.16 to 3.25. This ratio measures the extent to which the company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity.

From the data provided, we can observe that DexCom's financial leverage ratio decreased from 2.62 on March 31, 2020, to a low of 2.16 on December 31, 2021. However, the ratio started to increase again in the subsequent periods, reaching 3.25 on June 30, 2023. This increase suggests that the company might have taken on more debt to fund its operations or growth initiatives during that period.

It is important for investors and stakeholders to closely monitor DexCom's financial leverage ratio, as a high ratio could indicate increased financial risk and vulnerability to economic downturns or interest rate fluctuations. Additionally, a high financial leverage ratio may impact the company's ability to access additional financing or affect its creditworthiness in the eyes of lenders and investors.