Stock Analysis on Net
Stock Analysis on Net

DexCom Inc. (NASDAQ:DXCM)

$22.49

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

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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DexCom Inc., consolidated cash flow statement

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income (loss)
Depreciation and amortization
Share-based compensation
Collaborative research and development fee
Loss on extinguishment of debt
Non-cash interest expense
Non-cash collaborative research and development fee through issuance of common stock
Unrealized gain on equity investment
Realized (gain) loss on equity investment
Deferred income taxes, including benefit from valuation allowance release
Other non-cash income and expenses
Accounts receivable, net
Inventory
Prepaid and other assets
Operating lease right-of-use assets and liabilities, net
Accounts payable and accrued liabilities
Accrued payroll and related expenses
Deferred revenue and other liabilities
Changes in operating assets and liabilities
Adjustments to reconcile net income (loss) to cash provided by operating activities
Net cash provided by operating activities
Purchase of marketable securities
Proceeds from sale and maturity of marketable securities
Purchases of property and equipment
Acquisitions, net of cash acquired
Other investing activities
Net cash used in investing activities
Net proceeds from issuance of common stock
Purchases of treasury stock
Proceeds from issuance of convertible notes, net of issuance costs
Repurchase of convertible notes
Proceeds from sale of warrants
Purchase of convertible note hedge
Other financing activities
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Increase (decrease) in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash, beginning of period
Cash, cash equivalents and restricted cash, end of period

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).

Net Income (Loss)
The company exhibited a significant turnaround from a net loss of $127.1 million in 2018 to positive net income in subsequent years, reaching a peak of $493.6 million in 2020. Although net income decreased in 2021 to $154.7 million, it rebounded strongly to $341.2 million in 2022. This reflects a volatily yet generally improving profitability trend.
Depreciation and Amortization
There is a consistent increase in depreciation and amortization expense across the years, rising from $29.1 million in 2018 to $155.9 million in 2022. This likely indicates growth in fixed assets or intangible assets subject to amortization.
Share-based Compensation
Share-based compensation remained relatively stable from 2018 through 2022, fluctuating between $101.9 million and $126.5 million. This suggests a steady approach to employee incentives over the period.
Non-cash Interest Expense
Non-cash interest expense showed an increasing trend from $17.9 million in 2018 to a peak of $88.7 million in 2021, followed by a substantial decline to $6.3 million in 2022. This volatility may be connected to changes in debt structure or accounting treatments.
Realized (Gain) Loss on Equity Investment
This item experienced fluctuations, with a gain of $44.1 million in 2018 turning to a loss in subsequent years, although losses narrowed in 2022 to $0.2 million. The trend indicates variability in equity investment outcomes.
Deferred Income Taxes
Deferred income taxes display significant fluctuations, with a large negative adjustment of $277.3 million in 2020 and smaller negative values in other years. These swings may reflect the impact of tax valuation allowances or recognition of deferred tax assets/liabilities.
Working Capital Components
Accounts Receivable, Net
Accounts receivable showed inconsistent changes, with large negative changes in 2018, 2020, and 2022, indicating increased amounts owed to the company. Notably, in 2022, the negative change reached $199.9 million.
Inventory
Inventory declined from 2018 through 2021, with a sharp decrease peaking in 2020 at $114.5 million, before increasing to $49.3 million in 2022. The uptick in 2022 may signal changes in inventory management or buildup.
Prepaid and Other Assets
Generally, prepaid and other assets showed negative changes, especially in 2022 with a substantial $131.6 million decline, indicating asset usage or amortization of prepaid expenses.
Accounts Payable and Accrued Liabilities
This liability fluctuated significantly: after rising to $194.5 million in 2020, it dropped sharply in 2021 to $58 million, followed by a robust increase to $295.1 million in 2022, suggesting volatility in payables or accrued expenses management.
Cash Flow from Operating Activities
Operating cash flow demonstrated strong growth, increasing from $123.2 million in 2018 to $669.5 million in 2022, despite moderate fluctuations in intervening years. This positive trend supports improving operational efficiency and cash generation.
Cash Flow from Investing Activities
Investing cash flows consistently represented a net outflow across the period, ranging from approximately -$139.8 million in 2018 to a substantial -$521.5 million in 2022. The large negative amounts stem primarily from purchases of marketable securities and property and equipment, indicating continued investment in assets and securities.
Cash Flow from Financing Activities
Financing cash flow showed variability, with significant inflows in 2018 and 2020 attributed to proceeds from convertible notes issuance and other financing activities. Conversely, 2022 exhibited a substantial net outflow of $552.5 million, largely due to the purchase of treasury stock, signaling a shift toward capital return to shareholders.
Cash Position
The cash, cash equivalents, and restricted cash balance was volatile, increasing to $1.137 billion at the end of 2018, then declining to $446.4 million by 2019. Subsequently, it rose to a peak of $1.0536 billion in 2021 before dropping again to $643.3 million in 2022. These fluctuations reflect the combined effects of operating, investing, and financing activities, including significant investing outflows and financing repurchases.
Overall Analysis
The company experienced a significant improvement in profitability post-2018, marked by a transition from a net loss to consistent net income. Operating activities consistently generated positive cash flow, suggesting robust operational performance. In contrast, investing activities exerted continuous cash outflows, indicating ongoing investments in assets and securities. Financing cash flow patterns shifted markedly from substantial inflows in earlier years, driven by debt and equity issuance, to significant outflows in 2022, mainly linked to stock repurchases. The company's working capital components and non-cash expenses exhibited notable volatility, reflecting fluctuating operational and financial strategies. The aggregate trends depict a company progressing in profitability and operational cash generation but simultaneously engaging in heavy investment and shareholder return activities.