Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
DexCom Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to DexCom Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
DexCom Inc., profitability ratios
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).
- Gross Profit Margin
- The gross profit margin exhibited a generally positive trend from 2018 to 2021, increasing from 64.36% to a peak of 68.63% in 2021. However, in 2022, there was a decline to 64.72%, returning close to the level observed in 2018. This suggests some margin pressure or increased cost of goods sold in the most recent year after several years of improvement.
- Operating Profit Margin
- The operating profit margin showed significant volatility, starting at a negative -18.06% in 2018, indicating operational losses. It improved substantially in 2019 and 2020, reaching a high of 15.54%. Despite a decrease to 10.86% in 2021, there was a partial recovery to 13.44% in 2022. The improvement since 2018 reflects enhanced operational efficiency or control over operating expenses, though some fluctuations remain present.
- Net Profit Margin
- The net profit margin displayed a similar volatile pattern. It was negative at -12.32% in 2018, reflecting overall losses. The ratio improved to 6.85% in 2019 and peaked significantly at 25.62% in 2020, indicating strong net profitability that year. Subsequently, the margin decreased sharply to 6.32% in 2021 but rebounded to 11.73% in 2022. These fluctuations may be influenced by non-operating items, tax effects, or other one-time factors affecting net income.
- Return on Equity (ROE)
- ROE experienced pronounced changes over the period. It was negative at -19.16% in 2018, consistent with losses reported in profit margins. It surged to 11.45% in 2019 and even further to 27.02% in 2020, reflecting strong shareholder value creation. However, it declined sharply to 6.87% in 2021 before increasing again to 16.01% in 2022. The pattern indicates variability in the company's ability to generate returns on shareholders’ investments alongside fluctuations in profitability.
- Return on Assets (ROA)
- ROA followed a comparable trajectory to ROE, starting at a negative -6.63% in 2018, indicating asset inefficiency or losses. It improved to 4.22% in 2019 and peaked at 11.5% in 2020. A decline followed in 2021 to 3.18%, with a partial recovery to 6.33% in 2022. Although positive since 2019, the decline after 2020 signifies some challenges in asset utilization or diminished net income generation in subsequent years.
Return on Sales
Return on Investment
Gross Profit Margin
DexCom Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reflects the performance of the company over a five-year period, focusing on gross profit, revenue, and gross profit margin.
- Revenue
- There is a consistent upward trend in revenue, increasing from US$1,031,600 thousand in 2018 to US$2,909,800 thousand in 2022. This represents an almost threefold increase over the period, indicating significant business growth and market expansion.
- Gross Profit
- Gross profit shows a parallel increasing trend, rising from US$663,900 thousand in 2018 to US$1,883,100 thousand in 2022. This substantial growth in gross profit aligns with the increase in revenue, suggesting effective cost management relative to sales growth.
- Gross Profit Margin
- The gross profit margin experienced some fluctuations during the period. It started at 64.36% in 2018, decreased slightly to 63.11% in 2019, then increased reaching its peak at 68.63% in 2021 before dropping again to 64.72% in 2022. These variations indicate changes in cost structure or pricing strategies, although the margin remained relatively stable around the mid-60% mark throughout the period.
- Insights
- The steady increase in both revenue and gross profit demonstrates strong operational performance and scalability. Despite some variability in gross margin, the overall stability implies consistent profitability at the gross level. The peak in 2021 suggests a particularly favorable year in terms of cost efficiency or product mix, whereas the margin moderation in 2022 may require further analysis to understand cost pressures or competitive pricing impacts.
Operating Profit Margin
DexCom Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Operating Profit Margin, Industry | ||||||
| Health Care | ||||||
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).
1 2022 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue showed consistent growth over the analyzed period, increasing from approximately $1.03 billion in 2018 to around $2.91 billion in 2022. This represents a near threefold increase over five years, indicating strong sales expansion and market demand.
- Operating Income (Loss) Fluctuations
- The company experienced an operating loss of about $186.3 million in 2018, which shifted to positive operating income starting in 2019. Operating income rose significantly to $142.3 million in 2019, further increasing to $391.2 million by 2022. This reflects improved operational efficiency and better cost management over time.
- Operating Profit Margin Development
- Operating profit margin moved from a negative 18.06% in 2018 to a positive margin of 9.64% in 2019, showing a dramatic improvement in profitability. It peaked at 15.54% in 2020, slightly declined to 10.86% in 2021, then improved again to 13.44% in 2022. These fluctuations suggest some variability in cost structure or operational challenges, but overall the company maintains a healthy margin.
- Overall Insights
- The financial data reflects strong revenue growth accompanied by a transition from losses to solid profitability, as seen in rising operating income and improved profit margins. Despite some margin variability, the operating performance demonstrates resilience and effective scaling of operations across the observed periods.
Net Profit Margin
DexCom Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Profit Margin, Industry | ||||||
| Health Care | ||||||
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).
1 2022 Calculation
Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue
- The revenue of the company exhibited a consistent upward trend over the five-year period. Starting at approximately $1.03 billion at the end of 2018, revenue rose steadily each year, reaching nearly $2.91 billion by the end of 2022. This indicates sustained growth in sales or service delivery across the period observed.
- Net Income (Loss)
- The net income showed a significant improvement over time, transitioning from a net loss of approximately $127.1 million in 2018 to positive net income figures in subsequent years. The net income peaked notably in 2020 at $493.6 million, before declining in 2021 to $154.7 million. It then increased again to $341.2 million in 2022. This pattern suggests volatility in profitability but overall a positive trajectory post-2018 loss.
- Net Profit Margin
- The net profit margin followed a path mirroring the net income trend, starting in the negative territory at -12.32% in 2018. It improved to a positive 6.85% in 2019, then rose sharply to 25.62% in 2020. A decline followed in 2021, with the margin dropping to 6.32%, before improving again to 11.73% in 2022. These fluctuations indicate variability in the cost structure or operational efficiency relative to revenue, with an overall improvement from negative margins in 2018 to positive profitability in subsequent years.
- Summary
- Overall, the data reveals a company experiencing growth in revenue alongside improvements in profitability metrics from a loss position in 2018. Despite fluctuations in net income and net profit margin values, particularly the peak in 2020 followed by a dip in 2021, the general trend points to better earnings performance and profitability by the end of 2022 compared to the starting point. The company demonstrated resilience and growth capacity, although the year-over-year volatility suggests sensitivity to market or internal factors impacting profitability.
Return on Equity (ROE)
DexCom Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| ROE, Sector | ||||||
| Health Care Equipment & Services | ||||||
| ROE, Industry | ||||||
| Health Care | ||||||
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).
1 2022 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibits substantial fluctuations over the analyzed period. Starting with a significant loss of US$127.1 million in 2018, the company achieved a positive turnaround in 2019 with a net income of US$101.1 million. This upward trend continued sharply in 2020, reaching US$493.6 million. However, 2021 saw a notable decrease to US$154.7 million, followed by a recovery to US$341.2 million in 2022. The data reveals a volatile profitability pattern, with a peak in 2020 and some recovery after a dip in 2021.
- Stockholders’ Equity
- Stockholders' equity increased consistently from US$663.3 million at the end of 2018 to US$2.2515 billion by the end of 2021, reflecting a substantial growth in the company’s net asset base. In 2022, a slight decline to US$2.1318 billion was recorded, indicating a possible distribution of dividends, share repurchases, or other changes impacting equity. Overall, the trend suggests strengthening financial stability and capital accumulation over the period.
- Return on Equity (ROE)
- ROE experienced marked variability, beginning with a negative value of -19.16% in 2018, consistent with the net loss posted that year. Positive returns were observed from 2019 onward, peaking at 27.02% in 2020, coinciding with the highest net income reported. The ratio declined significantly to 6.87% in 2021, before improving to 16.01% in 2022. This indicates fluctuating efficiency in generating profits from equity, with the highest effectiveness in 2020 followed by moderate recovery in the final year analyzed.
Return on Assets (ROA)
DexCom Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| ROA, Sector | ||||||
| Health Care Equipment & Services | ||||||
| ROA, Industry | ||||||
| Health Care | ||||||
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).
1 2022 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income experienced a significant turnaround over the five-year period. Starting with a loss of 127.1 million USD in 2018, the company reported a positive net income of 101.1 million USD in 2019. This positive trajectory continued with a substantial increase to 493.6 million USD in 2020, followed by a decline to 154.7 million USD in 2021, and then a rise again to 341.2 million USD in 2022. This indicates overall improved profitability despite fluctuations after 2020.
- Total Assets
- Total assets showed steady growth throughout the period. Beginning at 1.916 billion USD in 2018, assets increased to 2.395 billion USD in 2019, then nearly doubled to 4.291 billion USD in 2020. Following this surge, total assets continued to grow, reaching 4.863 billion USD in 2021 and 5.392 billion USD in 2022. This consistent expansion of assets suggests ongoing investment and scaling operations.
- Return on Assets (ROA)
- The return on assets reflected the changes in profitability. Initially negative at -6.63% in 2018, ROA turned positive at 4.22% in 2019 and increased markedly to 11.5% in 2020, corresponding with peak net income and asset growth. However, the ratio declined sharply to 3.18% in 2021, indicating reduced efficiency or profitability relative to asset base, before improving again to 6.33% in 2022. This trend suggests volatility in operational efficiency or profitability margin despite overall financial growth.
- Overall Analysis
- Over the observed years, the financial data indicates a company transitioning from loss to profitability, accompanied by substantial asset growth. Peak performance in 2020 is notable, with the highest net income and ROA, after which profitability metrics experienced some fluctuations. The asset base has expanded consistently, hinting at strategic investments and capacity growth. The fluctuations in ROA after 2020 highlight variable efficiency in utilizing assets to generate earnings, which may warrant further analysis of operational or market factors affecting returns.