DexCom Inc (DXCM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.39 | 0.37 | 0.36 | 0.22 | 0.22 | 0.40 | 0.38 | 0.39 | 0.35 | 0.36 | 0.38 | 0.38 | 0.39 | 0.43 | 0.47 | 0.44 | 0.44 | 0.48 | 0.50 | 0.52 |
| Debt-to-capital ratio | 0.54 | 0.52 | 0.54 | 0.35 | 0.36 | 0.52 | 0.47 | 0.47 | 0.45 | 0.47 | 0.49 | 0.51 | 0.52 | 0.52 | 0.55 | 0.53 | 0.55 | 0.58 | 0.60 | 0.60 |
| Debt-to-equity ratio | 1.18 | 1.07 | 1.16 | 0.54 | 0.56 | 1.08 | 0.87 | 0.90 | 0.83 | 0.89 | 0.97 | 1.03 | 1.07 | 1.10 | 1.23 | 1.15 | 1.20 | 1.37 | 1.50 | 1.53 |
| Financial leverage ratio | 3.03 | 2.91 | 3.25 | 2.47 | 2.53 | 2.69 | 2.31 | 2.31 | 2.42 | 2.50 | 2.57 | 2.67 | 2.76 | 2.56 | 2.60 | 2.62 | 2.71 | 2.86 | 3.00 | 2.95 |
The solvency ratios of Dexcom Inc provide insights into the company's ability to meet its long-term financial obligations and manage its debt levels. Looking at the trend over the quarters, we see some fluctuations in the ratios.
The debt-to-assets ratio has remained relatively stable around 0.40, indicating that about 40% of Dexcom's assets are financed by debt, with the rest coming from equity. This suggests a moderate level of leverage.
The debt-to-capital ratio has shown some variation, ranging from 0.47 to 0.61, reflecting the proportion of debt in the company's capital structure. The recent increase to 0.61 in Q2 2023 suggests a higher reliance on debt to finance operations compared to previous quarters.
The debt-to-equity ratio has fluctuated between 0.90 and 1.55, with the highest value in Q2 2023 indicating that Dexcom had relatively higher debt relative to equity during that period. This ratio provides a view of the company's financial risk and leverage.
The financial leverage ratio has also shown variability, ranging from 2.31 to 3.25, indicating the extent to which Dexcom is using debt to finance its operations. A higher ratio implies higher financial risk due to increased reliance on debt financing.
Overall, Dexcom's solvency ratios suggest that the company has maintained a moderate level of debt relative to its assets and equity. However, the fluctuations in some ratios, particularly the debt-to-capital ratio and debt-to-equity ratio, highlight the need for careful monitoring of the company's debt levels and financial risk management going forward.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Dexcom Inc has demonstrated a positive trend over the past eight quarters, indicating the company's ability to cover its interest expenses with operating income. The ratio has consistently improved from a low of 3.41 in Q1 2022 to a high of 29.54 in Q4 2023. This signifies that Dexcom Inc is effectively generating enough earnings to comfortably meet its interest obligations. The significant increase in the interest coverage ratio showcases the company's strong financial position and improving profitability over the period under review.