Insulet Corporation (PODD)

Short-term

Turnover ratios

Insulet Corporation's inventory turnover has fluctuated over the years, decreasing from 2.09 in December 2020 to 1.14 in December 2021 before gradually improving to 1.45 in December 2024. This indicates that the company's efficiency in managing its inventory levels has varied, with a lower turnover suggesting slower sales relative to the amount of inventory held.

The receivables turnover ratio is not available for the years provided, indicating that the company's ability to collect payments from its customers within a given period is not quantifiable from the data provided.

Similarly, the payables turnover ratio is not available for the years provided, making it difficult to assess how efficiently the company is managing payments to its suppliers.

The working capital turnover has shown an increasing trend over the years, rising from 0.87 in December 2020 to 1.52 in December 2024. This suggests that the company is generating more revenue per unit of working capital employed, indicating improved operational efficiency and potentially better financial health.

Overall, while Insulet Corporation has shown improvements in its working capital turnover, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's activity ratios.

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Average number of days

Based on the provided data for Insulet Corporation's activity ratios, we can analyze the following:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand for Insulet Corporation have shown fluctuation over the years - starting at 174.85 days in December 2020, peaking at 319.20 days in December 2021, and gradually decreasing to 250.99 days by December 2024.
- A higher number of days of inventory on hand indicates that the company is holding more inventory, which may tie up cash flow and increase storage costs. The decrease in DOH over time could suggest improvements in inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on the days of sales outstanding (DSO) for Insulet Corporation. DSO typically measures the average number of days it takes a company to collect revenue after a sale is made. Without this data, it is challenging to assess the efficiency of the company in collecting its receivables.

3. Number of Days of Payables:
- Similar to DSO, the information on the number of days of payables is not available for Insulet Corporation in the provided data. This ratio reflects the average number of days it takes a company to pay its suppliers or vendors. Managing payables effectively can impact cash flow and liquidity.

Overall, based solely on the Days of Inventory on Hand data, it appears that Insulet Corporation has made progress in optimizing its inventory management processes over the years, potentially leading to improved working capital efficiency. However, a complete analysis of activity ratios would require data on Days of Sales Outstanding and Number of Days of Payables for a comprehensive assessment of the company's operational effectiveness.

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Long-term

The long-term activity ratios of Insulet Corporation indicate an improvement in its operational efficiency over the years.

1. Fixed Asset Turnover:
- Insulet Corporation's fixed asset turnover has shown a consistent increase from 1.89 in 2020 to 2.18 in 2022. This signifies that the company is generating more revenue from its fixed assets in 2022 compared to previous years.
- However, the data for 2023 and 2024 is not available, so it is unclear how the trend continued in those years. Nevertheless, the increasing trend up to 2022 suggests effective utilization of fixed assets to generate sales.

2. Total Asset Turnover:
- The total asset turnover ratio has also displayed a positive trajectory, rising from 0.48 in 2020 to 0.67 in 2024. This indicates that the company has been able to generate more revenue relative to its total assets over the years.
- The consistent increase in total asset turnover implies that Insulet Corporation is becoming more efficient in utilizing its assets to generate sales, which is a favorable indicator of operational efficiency and asset utilization.

In conclusion, the improving trends in both fixed asset turnover and total asset turnover ratios reveal that Insulet Corporation has been enhancing its operational efficiency and effectively utilizing its assets to generate revenue over the analyzed period.