Insulet Corporation (PODD)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 342,900 | 250,800 | 46,300 | 82,200 | 54,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,211,600 | 732,700 | 476,400 | 556,300 | 603,600 |
| Return on total capital | 28.30% | 34.23% | 9.72% | 14.78% | 9.10% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $342,900K ÷ ($—K + $1,211,600K)
= 28.30%
Insulet Corporation's return on total capital has displayed variability over the past five years. The return on total capital increased from 9.10% in 2020 to 14.78% in 2021, signaling an improvement in the company's ability to generate returns on its total invested capital. However, in 2022, the return on total capital decreased slightly to 9.72%, indicating a temporary downturn in efficiency.
The return on total capital surged significantly in 2023 to 34.23%, showcasing a substantial enhancement in the company's operational efficiency and profitability. This strong performance was maintained in 2024, with the return on total capital at 28.30%, although slightly lower than the previous year.
Overall, the trending data suggests that Insulet Corporation has managed to enhance its return on total capital significantly over the past five years, with occasional fluctuations. This indicates an improvement in the company's operational performance and efficiency in utilizing its total capital effectively to generate returns for its investors.
Peer comparison
Dec 31, 2024