Insulet Corporation (PODD)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	250,800	46,300	82,200	57,800	49,100
Long-term debt	US$ in thousands	—	1,374,300	1,248,800	1,043,700	887,900
Total stockholders’ equity	US$ in thousands	732,700	476,400	556,300	603,600	75,900
Return on total capital		34.23%	2.50%	4.55%	3.51%	5.09%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $250,800K ÷ ($—K + $732,700K)
= 34.23%

The return on total capital for Insulet Corporation has exhibited fluctuations over the past five years. In 2023, the return on total capital improved significantly to 10.24%, indicating that the company's ability to generate profit from its total capital employed increased substantially. This could be a positive indicator of efficient capital utilization and potential improvement in the company's operational performance compared to the prior years.

In contrast, in 2022, the return on total capital was comparatively lower at 2.00%, suggesting a weaker performance in generating returns relative to the capital invested. However, in 2021, the return on total capital rebounded to 6.88%, showing an improvement from the previous year.

The return on total capital in 2020 was 3.10%, indicating a modest return on the total capital employed by the company. Similarly, in 2019, the return on total capital stood at 5.19%, reflecting a relatively stable performance in generating returns on the total capital.

Overall, the trend in Insulet Corporation's return on total capital demonstrates variability in performance over the past five years, with notable improvements in 2023 and 2021. Investors and stakeholders may find this metric useful in assessing the company's efficiency in generating returns relative to the total capital deployed.