Insulet Corporation (PODD)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,159,900	805,600	752,100	582,300	480,300
Revenue	US$ in thousands	1,697,100	1,305,300	1,098,800	904,400	695,500
Gross profit margin		68.35%	61.72%	68.45%	64.39%	69.06%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,159,900K ÷ $1,697,100K
= 68.35%

Insulet Corporation's gross profit margin has shown fluctuation over the five-year period from 2019 to 2023. In 2019, the gross profit margin stood at 65.06%, increasing to 64.39% in 2020 before rebounding to 68.45% in 2021. Subsequently, there was a slight decrease in 2022 to 61.72%, followed by a notable increase to 68.35% in 2023.

This variation in the gross profit margin may be attributed to factors such as changes in pricing strategies, cost of goods sold, production efficiency, and economies of scale. The upward trend in recent years indicates an improvement in the company's ability to generate profit from its core business operations.

A higher gross profit margin signifies that Insulet Corporation is able to effectively control production costs and pricing, resulting in a larger percentage of revenue retained as profit after accounting for the cost of goods sold. Conversely, a lower gross profit margin could indicate pricing pressures, increased production costs, or inefficiencies in operations.

Overall, Insulet Corporation's increasing gross profit margin trend from 2019 to 2023 reflects positively on the company's operational efficiency and ability to generate profits from its core business activities. Investors and stakeholders may view this trend as a positive indicator of the company's financial health and performance.