Insulet Corporation (PODD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 953,400 | 704,200 | 674,700 | 791,600 | 947,600 |
| Short-term investments | US$ in thousands | — | 26,900 | 50,800 | 0 | 40,400 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 528,400 | 451,200 | 364,700 | 228,800 | 207,800 |
| Quick ratio | 1.80 | 1.62 | 1.99 | 3.46 | 4.75 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($953,400K
+ $—K
+ $—K)
÷ $528,400K
= 1.80
The quick ratio of Insulet Corporation has shown a gradual decline over the years, starting at 4.75 on December 31, 2020, and decreasing to 1.80 by December 31, 2024. This indicates a decrease in the company's ability to meet its short-term liabilities using its most liquid assets.
The quick ratio decreased from 4.75 in 2020 to 3.46 in 2021, and continued to decline to 1.99 in 2022, 1.62 in 2023, and finally to 1.80 in 2024. While a quick ratio above 1 indicates the company has sufficient liquid assets to cover its current liabilities, the declining trend may suggest a need for closer monitoring of the company's liquidity position. Insulet Corporation may need to assess its inventory management and working capital practices to improve its ability to meet short-term obligations efficiently.
Peer comparison
Dec 31, 2024