Insulet Corporation (PODD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,582,900 | 1,314,000 | 1,329,800 | 1,248,700 | 591,000 |
| Total current liabilities | US$ in thousands | 451,200 | 364,700 | 228,800 | 207,800 | 157,700 |
| Current ratio | 3.51 | 3.60 | 5.81 | 6.01 | 3.75 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,582,900K ÷ $451,200K
= 3.51
Insulet Corporation's current ratio has displayed fluctuations over the past five years. The current ratio measures the company's ability to cover its short-term obligations with its current assets. As of December 31, 2023, the current ratio stood at 3.51, which implies that the company has $3.51 in current assets for every dollar of current liabilities.
Comparing this to prior years, we observe a downward trend from 2021 onwards, indicating a potential decrease in the company's short-term liquidity position. In 2021, the current ratio was notably high at 5.81, suggesting a strong ability to meet short-term obligations. However, this ratio declined in the subsequent years, reaching its lowest point in 2023.
While a current ratio above 1 indicates that the company can pay off its short-term liabilities, the downward trend raises potential concerns about liquidity management. It is essential for Insulet Corporation to closely monitor its current assets and liabilities to ensure it can meet its short-term financial obligations effectively in the future.
Peer comparison
Dec 31, 2023