Insulet Corporation (PODD)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.58 | 3.68 | 3.56 | 3.70 | 3.47 | 3.26 | 3.34 | 3.47 | 3.60 | 3.98 | 4.69 | 5.98 | 5.81 | 5.72 | 5.87 | 6.42 | 6.01 | 6.62 | 8.08 | 4.15 |
| Quick 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 |
| 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 |
Insulet Corporation's current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, fluctuated over the period analyzed. The current ratio ranged from a high of 8.08 in June 2020 to a low of 3.26 in September 2023. The ratio generally remained above 1, indicating that the company had more current assets than current liabilities throughout this period, providing a buffer for meeting short-term obligations.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, followed a similar trend. It ranged from a peak of 6.77 in June 2020 to a low of 1.56 in December 2023. This ratio also mostly stayed above 1, indicating the company's ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which is the most stringent liquidity measure as it only considers cash and cash equivalents, mirrored the patterns of the quick ratio. It fluctuated between 1.56 and 6.77 over the period, suggesting that Insulet Corporation had sufficient liquid resources to cover its immediate liabilities.
Overall, despite some fluctuations, Insulet Corporation maintained relatively strong liquidity positions throughout the analyzed period, as indicated by its current, quick, and cash ratios consistently above 1. However, the downward trend in these ratios towards the end of the period may warrant further monitoring to ensure adequate liquidity management in the future.
Additional liquidity measure
| 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 conversion cycle | days | 350.50 | 377.47 | 273.96 | 285.04 | 273.55 | 277.16 | 270.93 | 265.10 | 253.32 | 270.65 | 310.86 | 330.56 | 319.20 | 280.35 | 217.13 | 184.89 | 174.85 | 145.93 | 126.49 | 126.49 |
Insulet Corporation's cash conversion cycle shows fluctuations over the periods provided in the data. The cash conversion cycle essentially measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from 126.49 days to 377.47 days. The trend indicates an overall increase in the time it takes for Insulet Corporation to convert its resources into cash, reaching a peak of 377.47 days on September 30, 2024.
An increase in the cash conversion cycle may suggest inefficiencies in managing inventory, collecting receivables, and paying suppliers, leading to potential liquidity challenges. On the other hand, a decreasing trend may indicate improved efficiency in working capital management.
Insulet Corporation should closely monitor and analyze its cash conversion cycle to identify areas for improvement in inventory management, accounts receivable collection, and payables management to optimize its cash flow and overall financial performance.