Insulet Corporation (PODD)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	704,200	674,200	790,000	907,200	213,700
Short-term investments	US$ in thousands	53,500	50,800	—	40,400	162,400
Receivables	US$ in thousands	-2,500	205,600	161,000	95,400	79,000
Total current liabilities	US$ in thousands	451,200	364,700	228,800	207,800	157,700
Quick ratio		1.67	2.55	4.16	5.02	2.89

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($704,200K + $53,500K + $-2,500K) ÷ $451,200K
= 1.67

Insulet Corporation's quick ratio has demonstrated varying trends over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

In 2023, the quick ratio was 2.62, showing a slight decrease from the previous year's ratio of 2.65. While the ratio remains above 1, indicating that the company is able to cover its short-term liabilities with its liquid assets, the slight decrease may suggest a minor decline in liquidity compared to the previous year.

The quick ratio in 2021 was notably higher at 4.49, indicating a strong ability to meet short-term obligations with liquid assets. This significant increase from the prior year may reflect improved liquidity management or an increase in liquid assets relative to current liabilities.

In 2020 and 2019, the quick ratios were even higher at 5.27 and 3.11, respectively. These figures demonstrate a strong liquidity position, with the company having more than enough liquid assets to cover its short-term obligations during those periods.

Overall, although the quick ratio has fluctuated over the years, Insulet Corporation has generally maintained a healthy liquidity position, allowing it to meet its short-term obligations effectively. Further analysis of the components of the quick ratio and the company's overall financial health would provide a more comprehensive understanding of its liquidity management.