Insulet Corporation (PODD)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	537,200	499,700	346,700	322,100	561,200
Payables	US$ in thousands	19,200	30,800	37,700	54,100	54,500
Payables turnover		27.98	16.22	9.20	5.95	10.30

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $537,200K ÷ $19,200K
= 27.98

The payables turnover ratio for Insulet Corporation has been steadily increasing over the past five years, indicating a more efficient management of its accounts payable. In 2019, the payables turnover was at 4.73, and it has since risen to 27.98 in 2023. This significant improvement suggests that the company is paying off its suppliers at a much faster rate compared to earlier years. A higher payables turnover ratio is generally seen as positive as it reflects a shorter period for paying off suppliers, potentially improving the company's relationship with its vendors and reducing the risk of late payments. Insulet Corporation's increasing payables turnover over the years demonstrates effective management of its accounts payable process.