Insulet Corporation (PODD)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,211,600 | 732,700 | 476,400 | 556,300 | 603,600 |
| ROE | 34.52% | 28.16% | 0.97% | 3.02% | 1.13% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $418,300K ÷ $1,211,600K
= 34.52%
Insulet Corporation's return on equity (ROE) has shown fluctuations over the years. In December 31, 2020, the ROE was 1.13%, indicating a relatively low return generated on shareholders' equity. However, by December 31, 2021, the ROE improved to 3.02%, although it still remained at a modest level. The ROE dropped to 0.97% by December 31, 2022, suggesting a decrease in the efficiency of the company in generating profits from shareholders' equity.
The significant improvement in ROE was observed in December 31, 2023, where the ROE surged to 28.16%, indicating a substantial increase in the return on equity that shareholders are earning. This notable growth continued into December 31, 2024, with an even higher ROE of 34.52%, signaling a significant enhancement in the company's ability to generate profit from the equity invested by shareholders.
Overall, the trend in Insulet Corporation's ROE indicates a mix of lower and higher returns over the years, with a particularly remarkable improvement in recent years. This suggests that the company has been able to enhance its profitability and utilize shareholders' equity more effectively to generate higher returns.
Peer comparison
Dec 31, 2024