Insulet Corporation (PODD)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 625,900 | 537,200 | 499,700 | 346,700 | 322,100 |
| Inventory | US$ in thousands | 430,400 | 402,600 | 346,800 | 303,200 | 154,300 |
| Inventory turnover | 1.45 | 1.33 | 1.44 | 1.14 | 2.09 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $625,900K ÷ $430,400K
= 1.45
Insulet Corporation's inventory turnover has shown a decline over the past few years. In 2020, the inventory turnover ratio was 2.09, indicating that the company turned over its inventory approximately 2.09 times during the year. However, this ratio decreased to 1.14 in 2021, and further to 1.44 in 2022. In 2023, the inventory turnover ratio decreased again to 1.33, before increasing slightly to 1.45 in 2024.
A declining inventory turnover ratio could suggest that the company is managing its inventory less efficiently, potentially facing issues such as overstocking, underperforming products, or ineffective inventory management practices. It would be important for Insulet Corporation to evaluate and improve its inventory management processes to optimize its working capital and operational efficiency.
Peer comparison
Dec 31, 2024