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
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.