Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | DexCom Inc. gross profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | DexCom Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | DexCom Inc. net profit margin ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | DexCom Inc. ROE deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | DexCom Inc. ROA deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
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 | 1,883,100) | 1,680,500) | 1,280,100) | 931,500) | 663,900) | |
| Revenue | 2,909,800) | 2,448,500) | 1,926,700) | 1,476,000) | 1,031,600) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 64.72% | 68.63% | 66.44% | 63.11% | 64.36% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 51.54% | 52.21% | 50.49% | 52.46% | — | |
| Cigna Group | 12.44% | 12.41% | 14.43% | 15.57% | — | |
| CVS Health Corp. | 16.62% | 17.48% | 18.01% | 17.41% | — | |
| Elevance Health Inc. | 16.79% | 17.09% | 19.71% | 18.77% | — | |
| Intuitive Surgical Inc. | 67.44% | 69.32% | 65.65% | 69.45% | — | |
| Medtronic PLC | 67.98% | 65.19% | 67.41% | 70.04% | — | |
| UnitedHealth Group Inc. | 24.09% | 23.60% | 25.62% | 23.19% | — | |
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 × 1,883,100 ÷ 2,909,800 = 64.72%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | DexCom Inc. gross profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
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) | 391,200) | 265,800) | 299,500) | 142,300) | (186,300) | |
| Revenue | 2,909,800) | 2,448,500) | 1,926,700) | 1,476,000) | 1,031,600) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 13.44% | 10.86% | 15.54% | 9.64% | -18.06% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 19.16% | 19.56% | 15.48% | 14.21% | — | |
| Cigna Group | 4.69% | 4.60% | 5.12% | 5.31% | — | |
| CVS Health Corp. | 2.41% | 4.54% | 5.19% | 4.69% | — | |
| Elevance Health Inc. | 4.94% | 5.15% | 4.97% | 5.49% | — | |
| Humana Inc. | 4.11% | 3.80% | 6.56% | 4.96% | — | |
| Intuitive Surgical Inc. | 25.35% | 31.89% | 24.09% | 30.69% | — | |
| Medtronic PLC | 18.15% | 14.89% | 16.57% | 20.51% | — | |
| UnitedHealth Group Inc. | 8.83% | 8.40% | 8.76% | 8.19% | — | |
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 6.23% | 6.69% | 7.04% | 6.89% | — | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 13.52% | 13.78% | 10.30% | 12.31% | — | |
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 × 391,200 ÷ 2,909,800 = 13.44%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | DexCom Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
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) | 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 15.88% | 16.42% | 12.99% | 11.56% | — | |
| Cigna Group | 3.72% | 3.11% | 5.31% | 3.35% | — | |
| CVS Health Corp. | 1.29% | 2.72% | 2.68% | 2.59% | — | |
| Elevance Health Inc. | 3.87% | 4.46% | 3.78% | 4.66% | — | |
| Humana Inc. | 3.03% | 3.54% | 4.43% | 4.20% | — | |
| Intuitive Surgical Inc. | 21.25% | 29.85% | 24.33% | 30.80% | — | |
| Medtronic PLC | 15.90% | 11.97% | 16.56% | 15.16% | — | |
| UnitedHealth Group Inc. | 6.25% | 6.06% | 6.03% | 5.76% | — | |
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 4.60% | 4.96% | 5.21% | 4.85% | — | |
| Net Profit Margin, Industry | ||||||
| Health Care | 10.55% | 11.48% | 7.64% | 10.09% | — | |
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 × 341,200 ÷ 2,909,800 = 11.73%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | DexCom Inc. net profit margin ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
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) | 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | 18.90% | 19.75% | 13.71% | 11.86% | — | |
| Cigna Group | 14.86% | 11.39% | 16.81% | 11.26% | — | |
| CVS Health Corp. | 5.84% | 10.54% | 10.35% | 10.39% | — | |
| Elevance Health Inc. | 16.59% | 16.93% | 13.77% | 15.15% | — | |
| Humana Inc. | 18.33% | 18.24% | 24.53% | 22.49% | — | |
| Intuitive Surgical Inc. | 11.98% | 14.32% | 10.90% | 16.69% | — | |
| Medtronic PLC | 9.59% | 7.01% | 9.44% | 9.25% | — | |
| UnitedHealth Group Inc. | 25.87% | 24.09% | 23.52% | 24.02% | — | |
| ROE, Sector | ||||||
| Health Care Equipment & Services | 15.36% | 15.06% | 15.16% | 14.26% | — | |
| ROE, Industry | ||||||
| Health Care | 22.88% | 24.08% | 15.82% | 20.90% | — | |
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 × 341,200 ÷ 2,131,800 = 16.01%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | DexCom Inc. ROE deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
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) | 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | 9.31% | 9.40% | 6.20% | 5.43% | — | |
| Cigna Group | 4.63% | 3.46% | 5.44% | 3.28% | — | |
| CVS Health Corp. | 1.82% | 3.39% | 3.11% | 2.98% | — | |
| Elevance Health Inc. | 5.86% | 6.26% | 5.28% | 6.21% | — | |
| Humana Inc. | 6.52% | 6.61% | 9.63% | 9.31% | — | |
| Intuitive Surgical Inc. | 10.19% | 12.58% | 9.50% | 14.17% | — | |
| Medtronic PLC | 5.54% | 3.87% | 5.28% | 5.16% | — | |
| UnitedHealth Group Inc. | 8.19% | 8.15% | 7.81% | 7.96% | — | |
| ROA, Sector | ||||||
| Health Care Equipment & Services | 5.63% | 5.63% | 5.61% | 5.18% | — | |
| ROA, Industry | ||||||
| Health Care | 8.60% | 8.69% | 5.36% | 7.15% | — | |
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 × 341,200 ÷ 5,391,700 = 6.33%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | DexCom Inc. ROA deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |