DexCom Inc (DXCM)
Interest coverage
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 | ||
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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 |
Interest expense (ttm) | US$ in thousands | 20,300 | 20,100 | 19,800 | 18,600 | 18,600 | 18,600 | 18,600 | 18,700 | 18,800 | -28,300 | -8,500 | 7,000 | 17,700 | 75,400 | 66,100 | 60,800 | 60,300 | 53,200 | 43,000 | 32,800 |
Interest coverage | 36.00 | 30.72 | 26.41 | 23.54 | 22.01 | 15.19 | 13.35 | 14.45 | 14.66 | — | — | 46.26 | 17.83 | 4.16 | 4.16 | 3.52 | 2.73 | -2.14 | -2.91 | -2.94 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $730,700K ÷ $20,300K
= 36.00
The interest coverage ratio for Dexcom Inc has been consistently improving over the quarters, indicating the company's ability to meet its interest obligations from its operating income. The trend shows a significant increase in interest coverage from Q1 2022 to Q4 2023, with the most recent quarter showing a strong ratio of 29.54. This suggests that Dexcom's profits are more than sufficient to cover its interest expenses, reflecting a healthier financial position and reduced financial risk. Additionally, the substantial improvement in the interest coverage ratio over the past few quarters indicates improved operational efficiency and financial stability for Dexcom Inc.
Peer comparison
Dec 31, 2023