Insulet Corporation (PODD)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	704,200	669,800	644,700	620,700	674,200	721,500	707,400	708,500	790,000	856,600	854,600	820,700	907,200	838,100	779,100	201,400	213,700	419,882	119,867	129,254
Short-term investments	US$ in thousands	53,500	104,700	103,300	102,000	50,800	50,400	50,000	—	—	500	17,500	29,500	40,400	58,600	65,300	120,200	162,400	185,622	189,881	187,120
Total current liabilities	US$ in thousands	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	157,700	113,282	105,773	113,973
Cash ratio		1.68	1.72	1.76	1.89	1.99	2.31	2.71	3.30	3.45	3.75	4.09	4.58	4.56	5.12	6.28	2.47	2.38	5.35	2.93	2.78

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($704,200K + $53,500K) ÷ $451,200K
= 1.68

Insulet Corporation's cash ratio has shown a declining trend over the past four quarters, starting from 2.09 in Q4 2022 to 1.82 in Q4 2023. This indicates that the company has a decreasing ability to cover its short-term liabilities with its available cash and cash equivalents.

The decreasing trend in the cash ratio could suggest that the company is becoming less liquid over time, which may raise concerns about its ability to meet its short-term obligations. A cash ratio below 1 would indicate that the company does not have enough cash to cover its short-term liabilities.

It is important for stakeholders to monitor this trend closely and consider the reasons behind the decreasing cash ratio, such as changes in operating performance, cash flow management, or investment activities. Further analysis of the company's cash management strategies and liquidity position would be beneficial to understand the implications of the declining cash ratio on Insulet Corporation's financial health.