Insulet Corporation (PODD)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.55 | 3.53 | 4.73 | 3.68 | 3.10 |
Insulet Corporation has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across the years 2020 to 2024. These ratios suggest that the company has minimal reliance on debt to finance its operations and investments.
However, it is important to note that while the debt ratios are low, the financial leverage ratio has shown some fluctuation over the years. The financial leverage ratio increased from 3.10 in 2020 to 4.73 in 2022, before decreasing to 2.55 in 2024. This indicates that the company's reliance on debt to support its assets and operations increased significantly in 2022 but then decreased to a more moderate level in the following years.
Overall, Insulet Corporation's solvency ratios reflect a healthy financial position with low debt levels relative to assets, capital, and equity, despite some fluctuations in its financial leverage ratio over the period analyzed.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8.03 | 6.93 | 1.73 | 1.34 | 1.22 |
Insulet Corporation's interest coverage has shown an improving trend over the past five years. In 2020, the interest coverage was low at 1.22, indicating that the company's ability to cover its interest expenses with its operating income was relatively weak. However, this ratio increased to 1.34 in 2021, showing a slight improvement.
Significantly, the interest coverage ratio saw a notable improvement in 2022, reaching 1.73, which suggests that the company's ability to meet its interest obligations from its operating income improved further. The trend continued positively in 2023, with the interest coverage ratio jumping to 6.93, indicating a substantial enhancement in the company's financial position and its ability to comfortably cover interest expenses.
By 2024, Insulet Corporation's interest coverage ratio improved even more, reaching 8.03. This indicates a strong ability to cover interest payments, reflecting a favorable financial position and indicating that the company's earnings are significantly exceeding its interest expenses. Overall, the improving trend in Insulet Corporation's interest coverage ratios over the years demonstrates enhanced financial stability and operational efficiency.