Insulet Corporation (PODD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.35% | 61.72% | 68.45% | 64.39% | 69.06% |
| Operating profit margin | 12.96% | 2.88% | 11.47% | 5.69% | 7.19% |
| Pretax margin | 12.65% | 0.75% | 1.87% | 1.07% | 2.08% |
| Net profit margin | 12.16% | 0.35% | 1.53% | 0.75% | 1.67% |
Insulet Corporation has shown consistent improvement in profitability ratios over the past five years. The gross profit margin has generally been strong, with a noticeable increase from 2019 to 2023, reaching 68.35%. This indicates efficient production and cost management.
The operating profit margin has shown significant improvement, particularly from 2022 to 2023, indicating better control over operating expenses and an increase in operating income as a percentage of revenue.
The pretax margin has also shown a substantial increase over the years, reflecting better overall profitability before taxes. This suggests improved income generation and stronger financial performance.
The net profit margin has shown a remarkable improvement, with a significant increase from 2019 to 2023, reaching 12.16%. This indicates that Insulet Corporation has been effectively managing its expenses and generating higher profits relative to its revenue.
Overall, the trend of increasing profitability ratios suggests that Insulet Corporation has been successful in enhancing its operational efficiency and overall profitability in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.50% | 1.67% | 6.15% | 2.75% | 4.37% |
| Return on assets (ROA) | 7.97% | 0.20% | 0.82% | 0.36% | 1.01% |
| Return on total capital | 34.23% | 2.50% | 4.55% | 3.51% | 5.09% |
| Return on equity (ROE) | 28.16% | 0.97% | 3.02% | 1.13% | 15.28% |
Insulet Corporation's profitability ratios have shown improvement over the past five years.
- Operating return on assets (Operating ROA): This ratio indicates the company's efficiency in generating operating profits from its assets. Insulet's Operating ROA has shown a positive trend, increasing from 1.67% in 2018 to 8.50% in 2023. This suggests that the company has been more effective in utilizing its assets to generate operating income.
- Return on assets (ROA): ROA measures the company's ability to generate profits from its total assets. Insulet's ROA has also shown substantial improvement over the years, increasing from 0.20% in 2018 to 7.97% in 2023. This indicates that the company has been more successful in generating profits relative to its total assets.
- Return on total capital: This ratio reflects the company's ability to generate returns for both equity and debt holders. Insulet's Return on Total Capital has shown a positive trend, increasing from 2.00% in 2018 to 10.24% in 2023. This demonstrates that the company has been able to generate higher returns for its capital providers.
- Return on equity (ROE): ROE measures the company's profitability from the perspective of its shareholders. Insulet's ROE has also improved significantly, from 0.97% in 2018 to 28.16% in 2023. This suggests that the company has been more efficient in generating profits for its shareholders relative to their equity investment.
Overall, the trend of improving profitability ratios indicates that Insulet Corporation has been effectively utilizing its assets and capital to generate profits and create value for its shareholders over the years.