Insulet Corporation (PODD)

Inventory turnover

		Dec 31, 2023	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
Cost of revenue (ttm)	US$ in thousands	537,200	541,000	554,100	531,600	499,700	441,800	376,200	347,600	346,700	266,800	358,600	449,200	528,100	670,863	637,195	603,964	561,200	524,096	502,013	466,063
Inventory	US$ in thousands	402,600	410,800	411,300	386,100	346,800	327,600	320,400	314,800	303,200	259,000	197,800	170,100	154,300	124,900	103,700	95,700	101,000	90,207	85,109	73,822
Inventory turnover		1.33	1.32	1.35	1.38	1.44	1.35	1.17	1.10	1.14	1.03	1.81	2.64	3.42	5.37	6.14	6.31	5.56	5.81	5.90	6.31

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $537,200K ÷ $402,600K
= 1.33

Insulet Corporation's inventory turnover ratio has shown a fluctuating trend over the past eight quarters. The ratio has ranged from a low of 1.10 in Q1 2022 to a high of 1.44 in Q4 2022. The most recent figures indicate a slight decline in the inventory turnover ratio, with values of 1.33 in Q4 2023, 1.32 in Q3 2023, and 1.35 in Q2 2023.

Overall, the inventory turnover ratio for Insulet Corporation has been relatively stable, staying within the range of 1.10 to 1.44 over the analyzed period. This suggests that the company is managing its inventory effectively, with a turnover rate that indicates how quickly inventory is sold and replenished. A high inventory turnover ratio generally indicates efficient inventory management, as it signifies that the company is selling and restocking its products efficiently.

It is important for Insulet Corporation to monitor its inventory turnover ratio regularly to ensure optimal inventory management practices and avoid issues such as overstocking or stockouts, which can impact the company's profitability and operational efficiency.