Insulet Corporation (PODD)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	418,300	206,300	4,600	16,800	6,800
Total assets	US$ in thousands	3,087,700	2,588,200	2,251,100	2,048,800	1,872,900
ROA		13.55%	7.97%	0.20%	0.82%	0.36%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $418,300K ÷ $3,087,700K
= 13.55%

The return on assets (ROA) of Insulet Corporation has exhibited fluctuating trends over the past few years. In December 31, 2020, the ROA stood at 0.36%, indicating a modest return generated from its assets. Subsequently, in December 31, 2021, there was a notable improvement in ROA to 0.82%, suggesting an enhanced efficiency in utilizing its assets to generate profit.

However, there was a decline in ROA to 0.20% by December 31, 2022, which may raise concerns regarding the company's asset utilization efficiency. The trend reversed significantly in December 31, 2023, with the ROA surging to 7.97%, indicating a substantial improvement in profitability relative to its asset base. This sharp increase suggests a potentially successful deployment of assets to generate higher returns.

By December 31, 2024, Insulet Corporation achieved an impressive ROA of 13.55%, reflecting a significant enhancement in profitability relative to its asset base compared to previous years. This substantial improvement in ROA highlights the company's ability to generate substantial returns from its assets, potentially indicating effective management and operational efficiency. It is crucial for investors and stakeholders to monitor this ratio to assess the company's performance in utilizing its assets to generate profits.