Name: DexCom Inc. (NASDAQ:DXCM) | Analysis of Debt
Creator: Stock Analysis on Net

Total Debt (Carrying Amount)
Total Debt (Fair Value)
Weighted-average Interest Rate on Debt

DexCom Inc., balance sheet: debt

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Short-term finance lease liabilities	4,200)	3,300)	8,800)	600)	—)
Current portion of long-term senior convertible notes	772,600)	—)	—)	—)	—)
Long-term senior convertible notes	1,197,700)	1,702,700)	1,667,200)	1,059,700)	1,010,300)
Long-term finance lease liabilities	59,600)	57,000)	54,000)	14,400)	7,300)
Total debt (carrying amount)	2,034,100)	1,763,000)	1,730,000)	1,074,700)	1,017,600)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Total debt exhibited a consistent upward trajectory between 2018 and 2022, increasing from 1,017,600 thousand US$ to 2,034,100 thousand US$. This represents an overall increase of approximately 100% over the five-year period, with the most significant growth occurring between 2019 and 2020.

Convertible Notes Composition: Long-term senior convertible notes served as the primary driver of the debt profile. These notes increased from 1,010,300 thousand US$ in 2018 to a peak of 1,702,700 thousand US$ in 2021. A significant shift in debt classification occurred in 2022, where 772,600 thousand US$ was reclassified as the current portion of long-term senior convertible notes, while the long-term portion decreased to 1,197,700 thousand US$. This transition indicates a substantial amount of principal becoming due within the short term.
Finance Lease Liabilities: Finance lease liabilities showed a steady growth pattern throughout the analyzed period. Long-term finance lease liabilities rose from 7,300 thousand US$ in 2018 to 59,600 thousand US$ by 2022. Short-term finance lease liabilities fluctuated, peaking at 8,800 thousand US$ in 2020 before settling at 4,200 thousand US$ in 2022. Despite the growth, lease obligations remained a marginal component of the total debt carrying amount.
Total Debt Growth Analysis: The total debt carrying amount experienced a sharp increase of approximately 61% between 2019 and 2020, rising from 1,074,700 thousand US$ to 1,730,000 thousand US$. Growth remained relatively flat between 2020 and 2021, followed by another increase to 2,034,100 thousand US$ in 2022. The rise in total debt is primarily attributed to the expansion of convertible note obligations rather than lease-related liabilities.

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	Dec 31, 2022
Selected Financial Data (US$ in thousands)
Senior Convertible Notes	3,451,100)
Finance lease liabilities	63,800)
Total debt (fair value)	3,514,900)
Financial Ratio
Debt, fair value to carrying amount ratio	1.73

Based on: 10-K (reporting date: 2022-12-31).

Weighted-average effective interest rate on debt: 0.87%

Interest rate	Debt amount¹	Interest rate × Debt amount
1.10%	774,800)	8,523)
0.50%	1,207,500)	6,038)
5.10%	63,800)	3,254)
Total	2,046,100)	17,814)
0.87%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in thousands

² Weighted-average interest rate = 100 × 17,814 ÷ 2,046,100 = 0.87%

DexCom Inc. (NASDAQ:DXCM)

Analysis of Debt

Total Debt (Carrying Amount)

Total Debt (Fair Value)

Weighted-average Interest Rate on Debt