Insulet Corporation (PODD)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	953,400	902,600	715,500	696,900	650,700	685,400	660,100	620,700	674,700	722,000	708,600	709,600	791,600	857,100	872,100	850,200	947,600	896,700	844,400	321,600
Short-term investments	US$ in thousands	—	—	105,500	54,300	53,500	104,700	103,300	102,000	50,800	50,400	50,000	—	0	500	17,500	29,500	40,400	58,600	65,300	120,200
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
Cash ratio		1.80	1.78	1.69	1.74	1.56	1.75	1.80	1.89	1.99	2.31	2.72	3.30	3.46	3.75	4.17	4.74	4.75	5.45	6.77	3.39

December 31, 2024 calculation

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

Insulet Corporation's cash ratio has been fluctuating over the past few years, indicating changes in the company's liquidity position. The cash ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, stood at 3.39 as of March 31, 2020, increasing to 6.77 by June 30, 2020. Subsequently, the ratio showed a decreasing trend but remained relatively stable around the range of 3 to 5 until March 31, 2023.

However, there was a noticeable decline in the cash ratio from March 31, 2023, to December 31, 2024, dropping from 1.89 to 1.80. This decreasing trend suggests a potential strain on Insulet Corporation's liquidity position during this period. Despite some fluctuations, the cash ratio remained above 1, indicating that the company had sufficient cash to cover its current liabilities.

It is essential for stakeholders to monitor Insulet Corporation's cash ratio closely to assess its ability to meet short-term obligations and to ensure the company maintains a healthy liquidity position to support its operational needs and strategic initiatives.