Insulet Corporation (PODD)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	273.55	277.16	270.93	265.10	253.32	270.65	310.86	330.56	319.20	354.33	201.33	138.22	106.65	67.96	59.40	57.84	65.69	62.82	61.88	57.81
Days of sales outstanding (DSO)	days	—	—	—	57.95	57.49	59.13	64.01	60.51	53.48	44.49	42.47	44.19	38.50	43.97	46.41	39.34	40.92	42.87	45.76	49.57
Number of days of payables	days	13.05	52.49	70.81	58.98	22.50	51.30	55.50	54.81	39.69	79.35	50.18	48.02	37.39	31.01	20.39	22.00	35.45	14.80	18.00	21.01
Cash conversion cycle	days	260.50	224.67	200.12	264.07	288.31	278.47	319.37	336.25	333.00	319.47	193.62	134.39	107.76	80.91	85.42	75.18	71.17	90.90	89.64	86.37

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 273.55 + — – 13.05
= 260.50

Insulet Corporation's cash conversion cycle has shown variability over the past eight quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, the cash conversion cycle increased to 337.86 days compared to the previous quarter, indicating potential inefficiencies in the company's management of its working capital. However, this was still lower than the cycle in Q4 2022.

In Q3 2023, the cycle decreased to 288.03 days, which could suggest improved efficiency in managing inventory, accounts receivable, and accounts payable compared to the previous quarter.

Q2 2023 saw a further reduction in the cycle to 262.53 days, reflecting a potential improvement in working capital management and quicker conversion of resources into cash flow.

Q1 2023 showed a slight increase in the cycle to 264.07 days compared to the previous quarter, but it remained relatively stable indicating consistent working capital management.

The data over the past eight quarters show some fluctuations in Insulet Corporation's cash conversion cycle, suggesting the need for continuous monitoring and potential optimization of working capital practices to enhance operational efficiency and financial performance.