Insulet Corporation (PODD)

Quick ratio

		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	US$ in thousands	704,200	669,800	644,700	620,700	674,200	721,500	707,400	708,500	790,000	856,600	854,600	820,700	907,200	838,100	779,100	201,400	213,700	419,882	119,867	129,254
Short-term investments	US$ in thousands	53,500	104,700	103,300	102,000	50,800	50,400	50,000	—	—	500	17,500	29,500	40,400	58,600	65,300	120,200	162,400	185,622	189,881	187,120
Receivables	US$ in thousands	-2,500	—	—	217,200	205,600	201,400	206,600	189,300	161,000	130,400	118,300	117,300	95,400	100,600	100,300	80,100	79,000	77,537	78,739	78,158
Total current liabilities	US$ in thousands	451,200	451,400	425,000	383,300	364,700	334,200	279,300	215,000	228,800	228,600	213,300	185,500	207,800	175,200	134,400	130,400	157,700	113,282	105,773	113,973
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

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 exhibited a decreasing trend over the past four quarters. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term obligations, with higher ratios representing a stronger liquidity position.

In Q4 2023, the quick ratio stood at 2.62, which indicates that the company had $2.62 in liquid assets available for every $1 of current liabilities. While this is still above the threshold of 1, the decreasing trend from the previous quarters raises some concerns about the company's liquidity position.

The decreasing quick ratio trend from Q1 2022 to Q4 2023 may indicate a potential strain on the company's liquidity position, as it has become less able to cover its short-term obligations with its current assets. Further investigation into the company's current assets and liabilities composition is recommended to assess the reasons behind the declining trend and determine the potential impact on the company's financial health and operations.