Stock Analysis on Net
Stock Analysis on Net

DexCom Inc. (NASDAQ:DXCM)

This company has been moved to the archive! The financial data has not been updated since October 26, 2023.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

DexCom Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal 32,600 5,700 — — —
State 26,100 8,300 6,100 1,000 2,700
Foreign 12,500 10,100 2,600 1,900 100
Current income taxes 71,200 24,100 8,700 2,900 2,800
Federal (4,300) 5,500 (198,800) — (1,700)
State (17,600) (3,400) (51,400) — (500)
Foreign 300 (7,000) (27,100) 200 —
Deferred income taxes (21,600) (4,900) (277,300) 200 (2,200)
Provision for (benefit from) income taxes 49,600 19,200 (268,600) 3,100 600

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).

Item Description The company
Current income taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. DexCom Inc. current income taxes increased from 2020 to 2021 and from 2021 to 2022.
Deferred income taxes Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. DexCom Inc. deferred income taxes increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Provision for (benefit from) income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. DexCom Inc. provision for (benefit from) income taxes increased from 2020 to 2021 and from 2021 to 2022.

Effective Income Tax Rate (EITR)

DexCom Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective tax rate 12.69% 11.04% -119.38% 2.98% -0.47%

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).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. DexCom Inc. effective tax rate increased from 2020 to 2021 and from 2021 to 2022.

Components of Deferred Tax Assets and Liabilities

DexCom Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net operating loss carryforwards 46,400 53,000 69,200 127,400 162,000
Capitalized research and development expenses 211,900 49,300 53,600 57,100 62,100
Tax credits 61,100 105,500 101,100 78,600 59,000
Share-based compensation 16,800 13,300 13,000 10,900 12,500
Fixed and intangible assets 34,400 26,400 16,900 14,000 16,000
Accrued liabilities and reserves 105,300 105,500 110,300 62,000 22,500
Collaborative agreement milestone accrual — 21,900 — — —
Convertible debt 9,300 — — 1,700 —
Other — 500 — — —
Gross deferred tax assets 485,200 375,400 364,100 351,700 334,100
Valuation allowance (78,700) (69,900) (55,500) (332,200) (330,100)
Net deferred tax assets 406,500 305,500 308,600 19,500 4,000
Fixed assets and acquired intangibles assets (69,900) (42,500) (36,300) (19,600) (3,800)
Convertible debt discount — (48,100) (55,900) — (100)
Other (300) — — — —
Deferred tax liabilities (70,200) (90,600) (92,200) (19,600) (3,900)
Net deferred tax assets (liabilities) 336,300 214,900 216,400 (100) 100

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).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. DexCom Inc. gross deferred tax assets increased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. DexCom Inc. net deferred tax assets decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. DexCom Inc. net deferred tax assets (liabilities) decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Deferred Tax Assets and Liabilities, Classification

DexCom Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred tax assets 341,200 220,800 216,400 — —
Deferred tax liabilities 4,900 5,900 — — —

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. DexCom Inc. deferred tax assets increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. DexCom Inc. deferred tax liabilities increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

DexCom Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 5,391,700 4,863,600 4,290,500 2,395,000 1,916,000
Less: Noncurrent deferred tax assets, net 341,200 220,800 216,400 — —
Total assets (adjusted) 5,050,500 4,642,800 4,074,100 2,395,000 1,916,000
Adjustment to Total Liabilities
Total liabilities (as reported) 3,259,900 2,612,100 2,464,000 1,512,400 1,252,700
Less: Noncurrent deferred tax liabilities, net 4,900 5,900 — — —
Total liabilities (adjusted) 3,255,000 2,606,200 2,464,000 1,512,400 1,252,700
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 2,131,800 2,251,500 1,826,500 882,600 663,300
Less: Net deferred tax assets (liabilities) 336,300 214,900 216,400 (100) 100
Stockholders’ equity (adjusted) 1,795,500 2,036,600 1,610,100 882,700 663,200
Adjustment to Net Income (loss)
Net income (loss) (as reported) 341,200 154,700 493,600 101,100 (127,100)
Add: Deferred income tax expense (benefit) (21,600) (4,900) (277,300) 200 (2,200)
Net income (loss) (adjusted) 319,600 149,800 216,300 101,300 (129,300)

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).

DexCom Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

DexCom Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 11.73% 6.32% 25.62% 6.85% -12.32%
Adjusted net profit margin 10.98% 6.12% 11.23% 6.86% -12.53%
Total Asset Turnover
Reported total asset turnover 0.54 0.50 0.45 0.62 0.54
Adjusted total asset turnover 0.58 0.53 0.47 0.62 0.54
Financial Leverage
Reported financial leverage 2.53 2.16 2.35 2.71 2.89
Adjusted financial leverage 2.81 2.28 2.53 2.71 2.89
Return on Equity (ROE)
Reported ROE 16.01% 6.87% 27.02% 11.45% -19.16%
Adjusted ROE 17.80% 7.36% 13.43% 11.48% -19.50%
Return on Assets (ROA)
Reported ROA 6.33% 3.18% 11.50% 4.22% -6.63%
Adjusted ROA 6.33% 3.23% 5.31% 4.23% -6.75%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. DexCom Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. DexCom Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 DexCom Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. DexCom Inc. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. DexCom Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

DexCom Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 341,200 154,700 493,600 101,100 (127,100)
Revenue 2,909,800 2,448,500 1,926,700 1,476,000 1,031,600
Profitability Ratio
Net profit margin1 11.73% 6.32% 25.62% 6.85% -12.32%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 319,600 149,800 216,300 101,300 (129,300)
Revenue 2,909,800 2,448,500 1,926,700 1,476,000 1,031,600
Profitability Ratio
Adjusted net profit margin2 10.98% 6.12% 11.23% 6.86% -12.53%

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).

2022 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × 341,200 ÷ 2,909,800 = 11.73%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenue
= 100 × 319,600 ÷ 2,909,800 = 10.98%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. DexCom Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Revenue 2,909,800 2,448,500 1,926,700 1,476,000 1,031,600
Total assets 5,391,700 4,863,600 4,290,500 2,395,000 1,916,000
Activity Ratio
Total asset turnover1 0.54 0.50 0.45 0.62 0.54
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue 2,909,800 2,448,500 1,926,700 1,476,000 1,031,600
Adjusted total assets 5,050,500 4,642,800 4,074,100 2,395,000 1,916,000
Activity Ratio
Adjusted total asset turnover2 0.58 0.53 0.47 0.62 0.54

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).

2022 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 2,909,800 ÷ 5,391,700 = 0.54

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 2,909,800 ÷ 5,050,500 = 0.58

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. DexCom Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets 5,391,700 4,863,600 4,290,500 2,395,000 1,916,000
Stockholders’ equity 2,131,800 2,251,500 1,826,500 882,600 663,300
Solvency Ratio
Financial leverage1 2.53 2.16 2.35 2.71 2.89
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 5,050,500 4,642,800 4,074,100 2,395,000 1,916,000
Adjusted stockholders’ equity 1,795,500 2,036,600 1,610,100 882,700 663,200
Solvency Ratio
Adjusted financial leverage2 2.81 2.28 2.53 2.71 2.89

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).

2022 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 5,391,700 ÷ 2,131,800 = 2.53

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 5,050,500 ÷ 1,795,500 = 2.81

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 DexCom Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 341,200 154,700 493,600 101,100 (127,100)
Stockholders’ equity 2,131,800 2,251,500 1,826,500 882,600 663,300
Profitability Ratio
ROE1 16.01% 6.87% 27.02% 11.45% -19.16%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 319,600 149,800 216,300 101,300 (129,300)
Adjusted stockholders’ equity 1,795,500 2,036,600 1,610,100 882,700 663,200
Profitability Ratio
Adjusted ROE2 17.80% 7.36% 13.43% 11.48% -19.50%

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).

2022 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 341,200 ÷ 2,131,800 = 16.01%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 319,600 ÷ 1,795,500 = 17.80%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. DexCom Inc. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 341,200 154,700 493,600 101,100 (127,100)
Total assets 5,391,700 4,863,600 4,290,500 2,395,000 1,916,000
Profitability Ratio
ROA1 6.33% 3.18% 11.50% 4.22% -6.63%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 319,600 149,800 216,300 101,300 (129,300)
Adjusted total assets 5,050,500 4,642,800 4,074,100 2,395,000 1,916,000
Profitability Ratio
Adjusted ROA2 6.33% 3.23% 5.31% 4.23% -6.75%

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).

2022 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 341,200 ÷ 5,391,700 = 6.33%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 319,600 ÷ 5,050,500 = 6.33%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. DexCom Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.