Insulet Corporation (PODD)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	953,400	704,200	674,700	791,600	947,600
Short-term investments	US$ in thousands	—	26,900	50,800	0	40,400
Total current liabilities	US$ in thousands	528,400	451,200	364,700	228,800	207,800
Cash ratio		1.80	1.62	1.99	3.46	4.75

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($953,400K + $—K) ÷ $528,400K
= 1.80

The cash ratio of Insulet Corporation has shown a declining trend over the past five years, decreasing from 4.75 in December 31, 2020, to 1.80 in December 31, 2024. This indicates that the company's ability to cover its short-term liabilities solely with cash and cash equivalents has weakened over this period. A cash ratio above 1.0 is generally considered healthy, as it shows the company has enough cash to cover its short-term obligations. However, the downward trajectory of Insulet's cash ratio may raise concerns about its liquidity position and ability to meet its immediate financial commitments solely from its available cash resources. Further analysis of the company's cash management and liquidity strategies may be warranted to address this trend.