Insulet Corporation (PODD)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.04 | 0.97 | 1.33 | 1.28 | 1.33 | 1.32 | 1.35 | 1.38 | 1.44 | 1.35 | 1.17 | 1.10 | 1.14 | 1.30 | 1.68 | 1.97 | 2.09 | 2.50 | 2.89 | 2.89 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 1.39 | 1.34 | 1.50 | 1.52 | 1.52 | 1.53 | 1.47 | 1.45 | 1.38 | 1.25 | 1.14 | 1.07 | 1.00 | 0.96 | 0.96 | 0.95 | 0.87 | 0.88 | 0.87 | 1.89 |
Insulet Corporation's inventory turnover has witnessed a declining trend over the past few years, indicating that the company is taking longer to sell its inventory. This may suggest inefficiencies in managing its inventory levels or potential issues with demand for its products.
The absence of data for receivables turnover and payables turnover limits our ability to assess the efficiency of the company's accounts receivable collection and accounts payable management processes.
Regarding the working capital turnover, the ratios have been fluctuating, but overall, there seems to be an improvement in how effectively the company is utilizing its working capital to generate sales. The increasing trend in this ratio suggests that the company is becoming more efficient in utilizing its working capital to generate revenue over time.
In conclusion, while there are some areas of concern, such as the declining inventory turnover, the improvement in working capital turnover indicates that Insulet Corporation may be making strides towards better operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 350.50 | 377.47 | 273.96 | 285.04 | 273.55 | 277.16 | 270.93 | 265.10 | 253.32 | 270.65 | 310.86 | 330.56 | 319.20 | 280.35 | 217.13 | 184.89 | 174.85 | 145.93 | 126.49 | 126.49 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Insulet Corporation's Days of Inventory on Hand (DOH) has shown fluctuations over the years, reaching a peak of 377.47 days on September 30, 2024, before decreasing to 350.50 days by December 31, 2024. The downward trend continued, with DOH dropping to 273.55 days by December 31, 2023. This ratio indicates the average number of days the company holds inventory before selling it and highlights efficiency in managing inventory levels.
On the other hand, the Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis. DSO typically measures how long it takes for a company to collect revenue after a sale, while the Number of Days of Payables indicates the average time it takes for a company to pay its suppliers.
Overall, Insulet Corporation should continue to monitor its inventory management practices to optimize efficiency, reduce excess inventory, and improve cash flow. Monitoring DSO and payables turnover can further enhance the company's working capital management and overall financial performance.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 2.44 | 2.29 | 2.18 | 2.25 | 2.20 | 2.12 | 2.05 | 2.01 | 1.97 | 1.93 | 1.89 | 1.93 | 1.95 | 1.88 |
| Total asset turnover | 0.62 | 0.60 | 0.65 | 0.68 | 0.66 | 0.63 | 0.61 | 0.60 | 0.58 | 0.57 | 0.56 | 0.55 | 0.54 | 0.52 | 0.52 | 0.52 | 0.48 | 0.51 | 0.51 | 0.70 |
Insulet Corporation's long-term activity ratios indicate how efficiently the company is utilizing its assets over a span of time.
1. Fixed Asset Turnover: The trend in Insulet's fixed asset turnover ratio shows a consistent increase from 1.88 in March 2020 to 2.18 in December 2022. This suggests that the company is generating more revenue for each dollar invested in fixed assets, reflecting improved efficiency in asset utilization. There was a slight fluctuation in the ratios in the following periods, with a peak of 2.44 in June 2023. The subsequent lack of data points might indicate a strategic shift or limited fixed asset utilization data available. Overall, the increasing trend in fixed asset turnover is a positive indication of Insulet's operational efficiency.
2. Total Asset Turnover: In terms of total asset turnover, Insulet's ratio fluctuated initially but displayed a general increasing trend from 0.48 in December 2020 to 0.62 in December 2024. This suggests that the company is generating more revenue relative to its total assets, indicating an improvement in overall asset efficiency. The ratio reached its lowest point in March 2020 at 0.70 but steadily increased over time. The increasing trend in total asset turnover reflects better asset utilization and efficiency in generating sales.
In conclusion, both the fixed asset turnover and total asset turnover ratios for Insulet Corporation show favorable trends, with improvements in asset utilization and operational efficiency over the years.