Insulet Corporation (PODD)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 250.99 | 273.55 | 253.32 | 319.20 | 174.85 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 250.99 | 273.55 | 253.32 | 319.20 | 174.85 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 250.99 + — – —
= 250.99
Insulet Corporation's cash conversion cycle has shown fluctuations over the past five years. In December 2020, the company had a cash conversion cycle of 174.85 days, which increased significantly to 319.20 days by December 2021. This sharp rise indicates a potential issue with the company's management of its cash flow and working capital.
However, in the subsequent years, Insulet managed to improve its cash conversion cycle. By December 2022, the cycle decreased to 253.32 days, showing that the company was able to streamline its operations and better manage its cash flow. Despite this improvement, the cycle increased again to 273.55 days by December 2023, suggesting some instability in the company's working capital management.
In the most recent year, December 2024, Insulet Corporation's cash conversion cycle decreased to 250.99 days. While this is an improvement from the previous year, the company still has room for further enhancement in optimizing its working capital efficiency.
In conclusion, Insulet Corporation has experienced fluctuations in its cash conversion cycle over the past five years, indicating varying levels of efficiency in managing its cash flow, inventory, and accounts receivable. The company should focus on sustaining the improvements made in recent years to enhance its overall financial performance.
Peer comparison
Dec 31, 2024