Insulet Corporation (PODD)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,697,100	1,305,300	1,098,800	904,400	695,500
Total current assets	US$ in thousands	1,582,900	1,314,000	1,329,800	1,248,700	591,000
Total current liabilities	US$ in thousands	451,200	364,700	228,800	207,800	157,700
Working capital turnover		1.50	1.38	1.00	0.87	1.61

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,697,100K ÷ ($1,582,900K – $451,200K)
= 1.50

The working capital turnover of Insulet Corporation has fluctuated over the past five years. In 2023, the working capital turnover ratio improved to 1.50 from 1.38 in 2022, indicating that the company generated $1.50 in net sales revenue for every dollar of working capital invested during the year. This increase suggests more efficient utilization of working capital in generating sales.

Looking back, in 2021, the working capital turnover was relatively low at 1.00, indicating that the company generated $1.00 of net sales revenue for every dollar of working capital invested during that year. This could suggest a less efficient use of working capital during that period.

In 2020, the working capital turnover ratio was 0.87, which indicates a slight decrease in efficiency compared to the previous year. However, in 2019, the ratio was notably higher at 1.70, suggesting that the company was more effective in utilizing its working capital to generate sales revenue.

Overall, the trend in Insulet Corporation's working capital turnover indicates fluctuations in the efficiency of utilizing working capital over the past five years, with improvements in some years and declines in others.