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.
Peer comparison
Dec 31, 2024