Insulet Corporation (PODD)

Working capital 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
Revenue (ttm)	US$ in thousands	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	1,069,800	1,016,800	968,800	904,400	835,100	788,794	743,088	704,628	660,135	628,071	575,549
Total current assets	US$ in thousands	1,582,900	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	591,000	793,901	498,807	496,382
Total current liabilities	US$ in thousands	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	157,700	113,282	105,773	113,973
Working capital turnover		1.50	1.53	1.47	1.45	1.38	1.25	1.14	1.07	1.00	0.99	0.98	0.96	0.87	0.85	0.83	1.81	1.63	0.97	1.60	1.51

December 31, 2023 calculation

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

Insulet Corporation's working capital turnover has shown a consistent upward trend over the past year, indicating improved efficiency in managing its working capital. The working capital turnover ratio increased from 1.07 in Q1 2022 to 1.50 in Q4 2023. This suggests that the company is generating more revenue relative to its working capital investment.

A higher working capital turnover ratio is generally viewed positively as it signifies that the company is efficiently utilizing its current assets to support sales and operations. Insulet Corporation's increasing working capital turnover ratio reflects its ability to convert working capital into sales more effectively over time. This trend could be attributed to improved inventory management, better receivables collection, or more efficient payment of payables.

Overall, Insulet Corporation's improving working capital turnover ratio indicates enhanced liquidity and operational efficiency, which is a positive signal for investors and stakeholders.