Insulet Corporation (PODD)

Working capital turnover

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
Revenue (ttm) US$ in thousands 1,900,300 1,812,600 1,872,700 1,780,700 1,697,100 1,557,000 1,465,100 1,368,000 1,305,300 1,243,300 1,178,100 1,141,900 1,098,800 1,037,200 995,600 958,700 904,400 867,700 825,815 776,651
Total current assets US$ in thousands 1,891,300 1,860,900 1,731,100 1,601,600 1,566,300 1,471,100 1,421,500 1,330,000 1,314,000 1,329,100 1,309,100 1,285,400 1,329,800 1,306,900 1,252,900 1,191,800 1,248,700 1,160,400 1,085,700 541,300
Total current liabilities US$ in thousands 528,400 506,200 486,000 432,400 451,200 451,400 425,000 383,300 364,700 334,200 279,300 215,000 228,800 228,600 213,300 185,500 207,800 175,200 134,400 130,400
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,900,300K ÷ ($1,891,300K – $528,400K)
= 1.39

The working capital turnover ratio of Insulet Corporation has shown variability over the period from March 31, 2020, to December 31, 2024. This ratio measures how effectively the company is using its working capital to generate revenue.

Initially, in March 2020, the working capital turnover was 1.89, which indicates that the company was able to generate revenue 1.89 times the value of its working capital during that period. However, there was a decline in this ratio in subsequent quarters, dropping to 0.87 by June 2020 and staying relatively stable around 0.87 to 0.88 until December 2020.

From March 2021 onwards, there was a gradual improvement in the working capital turnover ratio, reaching 1.52 by December 2023. This suggests that the company became more efficient in utilizing its working capital to generate revenue over time.

During the last quarter in the provided data set, December 31, 2024, the ratio decreased slightly to 1.39, indicating a slight decrease in efficiency compared to the previous period.

Overall, the upward trend in the working capital turnover ratio from March 2020 to December 2023 demonstrates an improvement in the company's ability to generate revenue relative to its working capital. However, the slight decline in the ratio in December 2024 suggests the need for further monitoring to maintain or improve efficiency in utilizing working capital for revenue generation.