Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
DexCom Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The financial performance over the analyzed periods demonstrates significant fluctuations in profitability and returns, highlighting phases of recovery and consolidation.
- Gross Profit Margin
- The gross profit margin showed a generally positive trend from early 2019 through 2021, beginning around 63.3% and peaking near 69.29% by late 2021. However, from 2022 onward, a gradual decline is observed, with the margin decreasing to approximately 63.87% by the third quarter of 2023. This suggests initial improvements in cost of goods sold relative to revenue were somewhat reversed in recent periods.
- Operating Profit Margin
- Operating profit margin experienced a sharp turnaround from negative values in early 2019 (around -15%) to positive margins by the end of 2019, reaching a peak above 16% in 2020. It remained relatively stable through 2021, though a decline starting in late 2021 resulted in margins generally ranging between 8.87% and 14.88% through 2023. This trend indicates improved operational efficiency initially, followed by some pressure on operating profits in recent quarters.
- Net Profit Margin
- The net profit margin follows a trajectory similar to operating margin, with losses in the first half of 2019 shifting to positive and strong profitability in 2020 and 2021, notably peaking over 25% at the end of 2020. Thereafter, net margins retreated significantly in 2022, falling to around 6.32%, before recovering moderately to approximately 11% by late 2023. This pattern points to volatility in bottom-line profitability, influenced by factors impacting both operating results and non-operating items.
- Return on Equity (ROE)
- ROE exhibits a substantial recovery from negative figures exceeding -20% in early 2019 to robust returns surpassing 27% in 2020 and 2021. However, a pronounced drop occurred in 2022, with returns falling to a low near 6.87%, followed by a rebound towards the end of the period, reaching over 16% by late 2023. This reflects changing profitability dynamics and possibly shifts in equity base or leverage over time.
- Return on Assets (ROA)
- ROA started in negative territory during early 2019, then improved significantly in late 2019, peaking above 11% in early 2021. A subsequent decrease in 2022 brought it down to around 3.18%, with a moderate recovery observed thereafter, culminating near 5.72% in late 2023. This trend suggests variations in asset utilization efficiency consistent with the overall profit margin and ROE movements.
In summary, the company demonstrated a strong improvement in profitability and returns from 2019 through 2021, characterized by escalating margins and returns. Nevertheless, beginning in 2022, there is clear evidence of reduced profitability and returns, though partial recovery is evident in 2023. The patterns imply challenges in sustaining earlier margin gains and returns, warranting further analysis into cost management, operational efficiency, and capital structure to support future growth.
Return on Sales
Return on Investment
Gross Profit Margin
DexCom Inc., gross profit margin calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Gross profit | 623,300) | 546,400) | 462,600) | 541,300) | 494,200) | 449,500) | 398,100) | 472,600) | 446,900) | 417,100) | 343,900) | 399,100) | 340,400) | 284,100) | 256,500) | 309,300) | 246,900) | 206,500) | 168,800) | ||||||
| Revenue | 975,000) | 871,300) | 741,500) | 815,200) | 769,600) | 696,200) | 628,800) | 698,200) | 650,200) | 595,100) | 505,000) | 568,900) | 500,900) | 451,800) | 405,100) | 462,800) | 396,300) | 336,400) | 280,500) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Gross profit margin1 | 63.87% | 63.94% | 64.44% | 64.72% | 64.97% | 66.10% | 67.44% | 68.63% | 69.29% | 69.15% | 67.48% | 66.44% | 65.38% | 63.92% | 63.68% | 63.11% | 62.54% | 62.76% | 63.30% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | 49.97% | 50.23% | 50.66% | 51.54% | 52.60% | 53.54% | 52.44% | 52.21% | 52.01% | 50.69% | 51.25% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 16.86% | 16.89% | 16.90% | 16.79% | 16.85% | 16.79% | 16.89% | 17.09% | 17.30% | 17.57% | 19.38% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 66.61% | 66.74% | 66.86% | 67.44% | 67.77% | 68.16% | 68.84% | 69.32% | 69.12% | 68.69% | 66.48% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 66.43% | 67.21% | 67.61% | 67.98% | 67.89% | 67.39% | 66.53% | 65.19% | 63.85% | 64.57% | 65.76% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 24.16% | 24.08% | 24.20% | 24.09% | 23.74% | 23.51% | 23.31% | 23.60% | 23.75% | 23.80% | 25.79% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Gross profit margin = 100
× (Gross profitQ3 2023
+ Gross profitQ2 2023
+ Gross profitQ1 2023
+ Gross profitQ4 2022)
÷ (RevenueQ3 2023
+ RevenueQ2 2023
+ RevenueQ1 2023
+ RevenueQ4 2022)
= 100 × (623,300 + 546,400 + 462,600 + 541,300)
÷ (975,000 + 871,300 + 741,500 + 815,200)
= 63.87%
2 Click competitor name to see calculations.
The financial data reveals several notable trends across the analyzed quarters.
- Revenue Growth
- Revenue demonstrates a general upward trajectory from March 2019 through September 2023. Starting at approximately $280.5 million in early 2019, revenue grew substantially, reaching $975 million by the third quarter of 2023. Although occasional quarter-over-quarter fluctuations occur, the overall trend indicates consistent expansion in sales volume or pricing over this period.
- Gross Profit Trends
- Gross profit follows a pattern similar to revenue, rising from about $168.8 million in March 2019 to $623.3 million in September 2023. There are fluctuations corresponding to revenue changes, but overall gross profit escalates steadily. This suggests effective control or improvement of direct costs in line with increased revenue.
- Gross Profit Margin Dynamics
- The gross profit margin percentage shows some variability but generally remains robust. Initially around 63.3% in March 2019, it increases to a peak near 69.3% during mid to late 2021. Afterwards, the margin slightly declines, stabilizing in the mid-60% range (approximately 63.9% to 64.7%) through 2022 and into 2023. This pattern indicates improved cost efficiency or favorable product mix during the peak period, followed by a modest compression of margin, possibly due to cost pressures or competitive factors.
- Insights and Implications
- The sustained revenue and gross profit growth underscores the company’s expanding market presence or enhanced sales effectiveness. The peak in gross margin during 2021 suggests a period of particularly efficient operations or advantageous pricing strategies, which later eased but remained healthy. The marginal decline in margin in recent quarters may warrant attention to cost management or pricing strategy to maintain profitability levels.
Operating Profit Margin
DexCom Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Operating income (loss) | 205,500) | 128,100) | 47,200) | 125,400) | 147,500) | 77,000) | 41,300) | 600) | 118,300) | 101,000) | 45,900) | 104,000) | 94,100) | 67,800) | 33,600) | 101,500) | 56,000) | (800) | (14,400) | ||||||
| Revenue | 975,000) | 871,300) | 741,500) | 815,200) | 769,600) | 696,200) | 628,800) | 698,200) | 650,200) | 595,100) | 505,000) | 568,900) | 500,900) | 451,800) | 405,100) | 462,800) | 396,300) | 336,400) | 280,500) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Operating profit margin1 | 14.88% | 14.02% | 13.14% | 13.44% | 9.54% | 8.87% | 10.15% | 10.86% | 15.92% | 15.90% | 15.39% | 15.54% | 16.31% | 15.09% | 11.89% | 9.64% | -9.16% | -13.58% | -15.07% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | 15.02% | 15.23% | 16.77% | 19.16% | 20.95% | 22.42% | 20.73% | 19.56% | 20.04% | 18.46% | 17.97% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 4.58% | 4.96% | 4.99% | 4.94% | 5.01% | 5.07% | 5.10% | 5.15% | 4.91% | 3.68% | 4.83% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 24.66% | 24.34% | 24.21% | 25.35% | 27.05% | 28.48% | 30.69% | 31.89% | 32.55% | 31.27% | 26.01% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 18.17% | 19.02% | 19.37% | 18.15% | 17.89% | 16.68% | 14.78% | 14.89% | 11.44% | 12.77% | 14.25% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 8.86% | 8.83% | 8.87% | 8.83% | 8.65% | 8.32% | 8.19% | 8.40% | 7.91% | 7.73% | 9.24% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Operating profit margin = 100
× (Operating income (loss)Q3 2023
+ Operating income (loss)Q2 2023
+ Operating income (loss)Q1 2023
+ Operating income (loss)Q4 2022)
÷ (RevenueQ3 2023
+ RevenueQ2 2023
+ RevenueQ1 2023
+ RevenueQ4 2022)
= 100 × (205,500 + 128,100 + 47,200 + 125,400)
÷ (975,000 + 871,300 + 741,500 + 815,200)
= 14.88%
2 Click competitor name to see calculations.
The quarterly financial performance demonstrates distinct trends in revenue, operating income, and operating profit margin over the analyzed periods.
- Revenue Trends
- Revenue exhibited a consistent upward trajectory from the beginning of the period through late 2020, increasing from approximately 280.5 million USD in March 2019 to nearly 569 million USD by December 2020. Following this period, there were fluctuations but the general direction continued upward, with revenue reaching about 975 million USD by September 2023. These figures indicate a sustained growth pattern, albeit with occasional periods of slower growth or minor declines.
- Operating Income (Loss) Trends
- The operating income figures reveal significant volatility. Initial quarters in 2019 show losses, reaching a low of -14.4 million USD in March 2019, followed by a turnaround to positive operating income by late 2019. From March 2020 onwards, operating income mostly remained positive with notable increases, peaking at approximately 147.5 million USD by September 2022 and reaching as high as 205.5 million USD in September 2023. However, there was fluctuation, such as a sharp drop to 600 thousand USD at the end of 2021, before rebounding again through 2022 and 2023.
- Operating Profit Margin Trends
- The operating profit margin began the analyzed period with negative percentages, reaching nearly -15% in early 2019, reflecting the operating losses. A positive turnaround started in late 2019 with margins rising above 9%, peaking around 16% in late 2020. Subsequently, the margin showed some variability, dipping to around 8.87% in mid-2022, but strengthened again toward the end of the dataset, stabilizing between 13% and 15% in 2023. This suggests improved operational efficiency alongside the revenue growth.
- Overall Insights
- The data reflects a company transitioning from an initial period of operating losses to consistent profitability. The growth in revenue is supported by an increase in operating income and a healthy operating profit margin, particularly from 2020 onward. Despite some volatility in operating income and margins in certain quarters, the general trend points to improved financial health and operational leverage over time.
Net Profit Margin
DexCom Inc., net profit margin calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net income (loss) | 120,700) | 115,900) | 48,600) | 91,800) | 101,200) | 50,900) | 97,300) | (19,400) | 70,900) | 62,900) | 40,300) | 355,200) | 72,200) | 46,300) | 19,900) | 92,700) | 45,800) | (10,500) | (26,900) | ||||||
| Revenue | 975,000) | 871,300) | 741,500) | 815,200) | 769,600) | 696,200) | 628,800) | 698,200) | 650,200) | 595,100) | 505,000) | 568,900) | 500,900) | 451,800) | 405,100) | 462,800) | 396,300) | 336,400) | 280,500) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Net profit margin1 | 11.08% | 11.18% | 9.68% | 11.73% | 8.24% | 7.47% | 8.23% | 6.32% | 22.82% | 24.45% | 25.36% | 25.62% | 12.69% | 11.93% | 9.24% | 6.85% | -12.68% | -13.96% | -11.51% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | 12.92% | 12.83% | 13.98% | 15.88% | 17.52% | 18.78% | 17.35% | 16.42% | 17.12% | 15.85% | 15.33% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 3.63% | 3.89% | 3.89% | 3.87% | 4.09% | 4.13% | 4.37% | 4.46% | 4.17% | 3.32% | 3.82% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 22.14% | 21.38% | 20.40% | 21.25% | 22.52% | 24.05% | 27.84% | 29.85% | 30.78% | 31.43% | 25.78% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 13.20% | 14.03% | 16.75% | 15.90% | 15.46% | 14.79% | 12.29% | 11.97% | 10.36% | 12.69% | 15.80% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 6.09% | 6.11% | 6.21% | 6.25% | 6.21% | 5.99% | 5.91% | 6.06% | 5.56% | 5.37% | 6.46% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Net profit margin = 100
× (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ (RevenueQ3 2023
+ RevenueQ2 2023
+ RevenueQ1 2023
+ RevenueQ4 2022)
= 100 × (120,700 + 115,900 + 48,600 + 91,800)
÷ (975,000 + 871,300 + 741,500 + 815,200)
= 11.08%
2 Click competitor name to see calculations.
The quarterly financial data reveals significant fluctuations in net income, revenue, and net profit margin over the analyzed periods. A detailed examination of these metrics provides insight into the company's overall financial performance and operational efficiency.
- Net Income (Loss)
- The net income exhibits considerable volatility throughout the timeline. Initially, the company experienced losses in the early quarters of 2019, with a low point in March 2019 (-$26.9 million) and June 2019 (-$10.5 million). From the third quarter of 2019 onward, there was a notable recovery, with net income turning positive and peaking at $355.2 million in December 2020. Following this peak, net income showed fluctuations but generally remained positive, except for a dip to -$19.4 million in December 2021. Subsequent quarters demonstrated a recovery trend, with net income reaching $120.7 million by September 2023, indicating an overall improvement in profitability compared to the earlier periods.
- Revenue
- Revenue followed a positive growth trajectory across the periods analyzed. Starting at $280.5 million in March 2019, it consistently increased each quarter, reaching $568.9 million by December 2020. Post-2020, revenue continued to grow but with some variability, reaching $815.2 million in December 2022 before peaking at $975.0 million in September 2023. The data indicates strong sales growth and expanding business operations, despite occasional fluctuations.
- Net Profit Margin
- The net profit margin initially was negative during the first half of 2019, reflecting operating losses. It transitioned into positive territory by the end of 2019, reaching a high of 25.62% in December 2020, coinciding with the peak net income quarter. Afterward, the margin declined but remained positive, fluctuating between approximately 6.3% and 11.7% from early 2021 through 2023. These trends suggest improvements in cost management and profitability, although the margin did not sustain its peak levels observed in late 2020.
In summary, the data illustrates a company that overcame initial profitability challenges to achieve significant revenue growth and improved net income over several quarters. The peak profitability observed around late 2020 was followed by moderate fluctuations but maintained an overall positive and stable net profit margin. This indicates an enhanced capacity to generate profits relative to revenue, despite variations in quarterly performance.
Return on Equity (ROE)
DexCom Inc., ROE calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net income (loss) | 120,700) | 115,900) | 48,600) | 91,800) | 101,200) | 50,900) | 97,300) | (19,400) | 70,900) | 62,900) | 40,300) | 355,200) | 72,200) | 46,300) | 19,900) | 92,700) | 45,800) | (10,500) | (26,900) | ||||||
| Stockholders’ equity | 2,267,900) | 2,100,400) | 2,233,000) | 2,131,800) | 1,824,500) | 2,255,900) | 2,189,300) | 2,251,500) | 2,136,100) | 1,997,600) | 1,903,200) | 1,826,500) | 1,499,300) | 1,353,900) | 934,500) | 882,600) | 764,300) | 688,300) | 668,600) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROE1 | 16.62% | 17.02% | 13.10% | 16.01% | 12.61% | 8.85% | 9.67% | 6.87% | 24.78% | 26.56% | 27.01% | 27.02% | 15.41% | 15.12% | 15.83% | 11.45% | -22.41% | -24.77% | -19.41% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | 13.77% | 13.88% | 15.68% | 18.90% | 22.11% | 23.44% | 21.82% | 19.75% | 21.04% | 18.86% | 17.06% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 15.82% | 16.78% | 16.62% | 16.59% | 17.26% | 17.04% | 17.36% | 16.93% | 15.44% | 12.10% | 13.92% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 12.10% | 12.00% | 11.70% | 11.98% | 11.97% | 11.93% | 13.58% | 14.32% | 14.80% | 14.97% | 11.56% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 7.90% | 8.33% | 9.88% | 9.59% | 9.35% | 9.05% | 7.54% | 7.01% | 5.70% | 7.05% | 8.77% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 25.67% | 25.63% | 25.46% | 25.87% | 26.03% | 25.07% | 23.98% | 24.09% | 21.95% | 21.03% | 25.42% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
ROE = 100
× (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ Stockholders’ equity
= 100 × (120,700 + 115,900 + 48,600 + 91,800)
÷ 2,267,900 = 16.62%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data over the observed periods reveals several important trends and fluctuations in profitability, equity levels, and return metrics.
- Net Income (Loss)
- The net income exhibits significant volatility across the quarters. The early periods show negative figures turning to positive by late 2019, peaking at a notable high toward the end of 2020. Subsequently, net income remains generally positive but with considerable fluctuations, including a sharp decline to a negative value at the end of 2021, followed by robust positive recovery in 2022 and 2023. The overall trend indicates episodes of strong profitability interspersed with occasional downturns.
- Stockholders’ Equity
- The stockholders’ equity demonstrates consistent growth over most of the periods, increasing steadily from the beginning of the timeframe until the first half of 2022. There is a slight decline noticed in late 2022, but equity levels bounce back in 2023, ultimately reaching the highest values in the last reported quarters. This trend suggests ongoing capital accumulation and possibly retained earnings growth or capital infusions enhancing the equity base.
- Return on Equity (ROE)
- The ROE percentages reflect considerable variability, corresponding broadly with the fluctuations in net income. Initial quarters show negative returns, shifting to positive values by late 2019 and maintaining generally positive performance through much of 2020 and 2021, though with a pronounced dip in the last quarter of 2021. The recovery from 2022 onward is marked by increased ROE percentages, indicating improved profitability relative to shareholder equity. Despite the ups and downs, ROE remains mostly within a positive range in recent periods, suggesting effective utilization of equity to generate profits.
In summary, the financial data reveals a pattern of cyclical profitability with significant net income swings, alongside a steadily growing equity base. The return on equity fluctuates in concert with profitability but exhibits improvement in the more recent quarters. This pattern may indicate operational challenges balanced by strategic capital management and profit recovery efforts over the observed periods.
Return on Assets (ROA)
DexCom Inc., ROA calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net income (loss) | 120,700) | 115,900) | 48,600) | 91,800) | 101,200) | 50,900) | 97,300) | (19,400) | 70,900) | 62,900) | 40,300) | 355,200) | 72,200) | 46,300) | 19,900) | 92,700) | 45,800) | (10,500) | (26,900) | ||||||
| Total assets | 6,596,200) | 6,820,700) | 5,515,900) | 5,391,700) | 4,899,200) | 5,217,400) | 5,057,000) | 4,863,600) | 4,775,900) | 4,503,800) | 4,389,800) | 4,290,500) | 3,833,200) | 3,521,800) | 2,447,900) | 2,395,000) | 2,185,700) | 2,065,900) | 1,974,000) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROA1 | 5.72% | 5.24% | 5.30% | 6.33% | 4.69% | 3.83% | 4.19% | 3.18% | 11.08% | 11.78% | 11.71% | 11.50% | 6.03% | 5.81% | 6.04% | 4.22% | -7.84% | -8.25% | -6.58% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | 7.16% | 7.04% | 7.87% | 9.31% | 10.84% | 11.53% | 10.44% | 9.40% | 9.82% | 8.70% | 7.86% | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 5.50% | 5.87% | 5.69% | 5.86% | 6.03% | 6.05% | 6.21% | 6.26% | 5.63% | 4.40% | 4.93% | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 10.31% | 10.25% | 10.05% | 10.19% | 10.39% | 10.47% | 12.02% | 12.58% | 13.06% | 13.20% | 10.17% | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 4.32% | 4.63% | 5.79% | 5.54% | 5.35% | 5.13% | 4.23% | 3.87% | 2.97% | 3.69% | 4.70% | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 7.69% | 7.53% | 7.30% | 8.19% | 7.99% | 7.93% | 7.89% | 8.15% | 7.24% | 6.90% | 8.23% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
ROA = 100
× (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ Total assets
= 100 × (120,700 + 115,900 + 48,600 + 91,800)
÷ 6,596,200 = 5.72%
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in the company's profitability, asset base, and returns over the examined periods.
- Net Income (Loss)
- The company experienced fluctuations in net income across the quarters. Initially, there were losses in early 2019, with negative figures recorded in the first two quarters. A positive turnaround commenced in the third quarter of 2019, continuing to rise significantly by the fourth quarter of 2020, where net income peaked notably. This surge was followed by a downturn at the end of 2021, with a marked loss recorded in that quarter. However, from 2022 onwards, net income showed a strong recovery and growth trend, culminating in the highest quarterly gains in the latter part of 2023.
- Total Assets
- There is a consistent upward trend in total assets over the entire time frame. The asset base almost tripled from early 2019 to the third quarter of 2023. This growth reflects significant asset accumulation, particularly pronounced during mid-2020 to mid-2023, indicating potential expansion investments or acquisitions.
- Return on Assets (ROA)
- ROA exhibited substantial variability. Initially negative, it transitioned to positive territory by the end of 2019, reaching a peak in late 2020. Despite a decline from early 2021 to late 2021, ROA remained positive, though notably lower than the previous peak. Starting in 2022, it showed moderate recovery and stabilization with fluctuations, maintaining a generally positive level through 2023. This pattern reflects improved efficiency in asset utilization after early losses, followed by some operational challenges, and eventual stabilization at a moderate return level.
Overall, the data indicators suggest the company made notable progress in enhancing profitability and asset growth, despite intermittent periods of losses and reduced returns. The asset increase appears to support growth initiatives, while improved yet volatile ROA highlights ongoing efforts to optimize asset usage for profitability. The quarterly trend of net income indicates resilience and recovery capability after setbacks.