Insulet Corporation (PODD)

Solvency ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.00 0.00 0.57 0.60 0.61 0.64 0.66 0.67 0.61 0.63 0.64 0.57 0.56 0.54 0.56 0.81 0.78 0.78 0.62 0.63
Debt-to-capital ratio 0.00 0.00 0.71 0.73 0.74 0.76 0.77 0.76 0.69 0.72 0.73 0.64 0.63 0.61 0.62 0.94 0.92 0.87 0.71 0.73
Debt-to-equity ratio 0.00 0.00 2.47 2.72 2.88 3.22 3.28 3.11 2.24 2.52 2.69 1.80 1.73 1.55 1.62 15.24 11.70 6.55 2.43 2.68
Financial leverage ratio 3.53 4.06 4.31 4.55 4.73 5.06 5.00 4.63 3.68 4.01 4.19 3.14 3.10 2.87 2.89 18.78 15.06 8.42 3.91 4.26

The solvency ratios of Insulet Corporation provide insight into the company's ability to meet its long-term debt obligations.

1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets that are financed by debt. The trend shows a slight decrease from 0.62 in Q4 2022 to 0.55 in Q4 2023, indicating that the company is relying less on debt to finance its assets.

2. Debt-to-capital ratio: This ratio assesses the proportion of a company's capital that is funded by debt. The trend shows a gradual decrease from 0.75 in Q4 2022 to 0.66 in Q4 2023, suggesting a more favorable capital structure with reduced reliance on debt.

3. Debt-to-equity ratio: This ratio indicates the amount of debt used to finance the company's operations compared to shareholders' equity. The trend shows fluctuations, but overall, there is a decrease from 3.29 in Q3 2022 to 1.93 in Q4 2023, signaling a decrease in the company's leverage and potentially lower financial risk.

4. Financial leverage ratio: This ratio measures the company's total assets' funding by debt. The trend exhibits a gradual decrease from 4.73 in Q4 2022 to 3.53 in Q4 2023, indicating that the company's financial leverage has improved, reflecting a more stable financial position.

Overall, the declining trend in the solvency ratios of Insulet Corporation suggests a positive shift towards a healthier financial position with reduced reliance on debt financing and improved debt management.

Coverage ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 6.93 4.34 2.86 1.14 1.27 1.49 1.84 1.87 1.33 0.47 0.40 1.25 1.20 1.76 1.52 1.18 1.42 1.61 1.69 1.59

Insulet Corporation's interest coverage ratio has shown a significant improvement over the past quarters as seen in the data provided. In Q4 2023, the interest coverage ratio was 28.95, indicating that the company's operating income was nearly 29 times higher than its interest expenses. This suggests that Insulet Corporation had a strong ability to meet its interest obligations from its operating earnings.

The trend of increasing interest coverage ratios from Q1 2022 to Q4 2023 is a positive sign, reflecting the company's improving financial health and reduced risk of defaulting on debt payments. The sharp increase in Q4 2023 compared to the previous quarters indicates a substantial improvement in the company's profitability and/or a reduction in its interest expenses.

The interest coverage ratio exceeding 1 in all quarters indicates that Insulet Corporation generated sufficient operating income to cover its interest expenses. However, the significant fluctuations in the ratio in earlier quarters, particularly in Q1 2023, suggest that the company may have faced challenges in meeting its interest obligations during that period.

Overall, the improving trend in Insulet Corporation's interest coverage ratio demonstrates the company's ability to manage its debt commitments and indicates a strengthening financial position over time.