DexCom Inc (DXCM)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	698,900	762,900	826,100	798,700	730,700	617,500	523,000	437,800	409,400	282,000	249,500	271,400	276,700	372,100	353,300	317,900	309,700	313,400	274,800	214,000
Interest expense (ttm)	US$ in thousands	19,000	19,000	19,200	20,300	20,300	20,100	19,800	18,600	19,400	40,900	61,400	81,900	101,300	99,700	99,000	94,100	84,700	75,400	66,100	60,800
Interest coverage		36.78	40.15	43.03	39.34	36.00	30.72	26.41	23.54	21.10	6.89	4.06	3.31	2.73	3.73	3.57	3.38	3.66	4.16	4.16	3.52

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $698,900K ÷ $19,000K
= 36.78

The interest coverage ratio for DexCom Inc has shown some fluctuations over the years, indicating the company's ability to cover its interest expenses. The ratio ranged from a low of 2.73 as of December 31, 2021, to a high of 43.03 as of June 30, 2024. An interest coverage ratio below 1 suggests the company is not generating enough operating income to cover its interest expenses, which could be a cause for concern. However, DexCom Inc's interest coverage ratios have generally been above 1, indicating that the company has been able to cover its interest payments. The significant increase in the interest coverage ratio from December 31, 2022, to December 31, 2024, suggests an improvement in the company's ability to meet its interest obligations, which may reflect positively on its financial health and stability.