Insulet Corporation (PODD)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	206,300	4,600	16,800	6,800	11,600
Total stockholders’ equity	US$ in thousands	732,700	476,400	556,300	603,600	75,900
ROE		28.16%	0.97%	3.02%	1.13%	15.28%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $206,300K ÷ $732,700K
= 28.16%

Insulet Corporation's Return on Equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the ROE surged to 28.16%, marking a substantial improvement from the prior year's ROE of 0.97%. This sharp increase indicates a considerable enhancement in the company's ability to generate profits from shareholders' equity.

The ROE in 2022 was notably low at 0.97%, reflecting a significant decline from the ROE of 3.02% in 2021. This decrease suggests inefficient utilization of equity to generate earnings during that period.

In 2021, the ROE was 3.02%, which was a slight improvement from 1.13% in 2020. Although there was a positive trend in ROE during these years, the ratios remained relatively low, indicating room for further enhancement in the company's profitability relative to its equity base.

The highest ROE in the past five years was recorded in 2019 at 15.28%, demonstrating a strong profitability performance compared to the subsequent years. The fluctuation in ROE over the analyzed period implies varying levels of effectiveness in leveraging shareholder equity to generate returns.

Overall, the substantial increase in ROE in 2023 is a positive indicator of improved profitability and efficiency in utilizing equity, although the company should aim for consistency and sustainable growth in ROE over the long term.