Insulet Corporation (PODD)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.51 | 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 | 3.75 | 7.01 | 4.72 | 4.36 |
| Quick ratio | 1.67 | 1.72 | 1.76 | 2.45 | 2.55 | 2.91 | 3.45 | 4.18 | 4.16 | 4.32 | 4.64 | 5.22 | 5.02 | 5.69 | 7.03 | 3.08 | 2.89 | 6.03 | 3.67 | 3.46 |
| 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 |
Insulet Corporation has demonstrated consistently strong liquidity ratios over the past eight quarters.
The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has ranged from 3.26 to 3.98, with an average of around 3.68. This indicates that Insulet has more than enough current assets to cover its current liabilities in the short term.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Insulet's quick ratio has ranged from 2.35 to 3.54, averaging approximately 2.93. This ratio suggests that the company can cover its short-term obligations even if inventory is excluded from its current assets.
The cash ratio, the most conservative liquidity ratio, measures the company's ability to cover its current liabilities with its cash and cash equivalents alone. Insulet's cash ratio has fluctuated between 1.75 and 3.63, with an average of about 2.47. This indicates that the company holds a sufficient amount of cash to meet its short-term obligations without relying on other current assets.
Overall, Insulet Corporation's liquidity ratios portray a financially stable and well-prepared position to meet its short-term obligations, suggesting a strong financial health and efficient management of its liquid assets.
Additional liquidity measure
| 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 conversion cycle | days | 260.50 | 224.67 | 200.12 | 264.07 | 288.31 | 278.47 | 319.37 | 336.25 | 333.00 | 319.47 | 193.62 | 134.39 | 107.76 | 80.91 | 85.42 | 75.18 | 71.17 | 90.90 | 89.64 | 86.37 |
The cash conversion cycle for Insulet Corporation has exhibited some variability over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 337.86 days, which was higher compared to the previous quarter. This suggests that it took the company longer to convert its investments in inventory and other resources into cash during this period.
However, in general, Insulet Corporation's cash conversion cycle has shown some improvement since Q2 2022 when it was at its peak at 319.37 days. The trend has generally been decreasing, indicating that the company has been managing its working capital more efficiently and possibly improving inventory management and collection processes.
It is worth noting that in Q1 and Q2 of 2023, the cash conversion cycle was at its lowest point at 262.53 and 264.07 days, respectively, demonstrating that the company was able to convert its investments into cash more quickly during those quarters.
Overall, Insulet Corporation should continue to monitor its cash conversion cycle closely to ensure that working capital is being effectively utilized and that efficiency in converting resources into cash is maintained or improved over time.