GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Insulet Corp (NAS:PODD) » Definitions » ROIC %

PODD (Insulet) ROIC % : 47.32% (As of Jun. 2024)


View and export this data going back to 2007. Start your Free Trial

What is Insulet ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Insulet's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 47.32%.

As of today (2024-10-29), Insulet's WACC % is 11.66%. Insulet's ROIC % is 24.84% (calculated using TTM income statement data). Insulet generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Insulet ROIC % Historical Data

The historical data trend for Insulet's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Insulet ROIC % Chart

Insulet Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.57 5.01 10.79 1.40 13.83

Insulet Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.17 13.98 25.37 13.00 47.32

Competitive Comparison of Insulet's ROIC %

For the Medical Devices subindustry, Insulet's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Insulet's ROIC % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Insulet's ROIC % distribution charts can be found below:

* The bar in red indicates where Insulet's ROIC % falls into.



Insulet ROIC % Calculation

Insulet's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=220 * ( 1 - 3.87% )/( (1386.3 + 1673)/ 2 )
=211.486/1529.65
=13.83 %

where

Insulet's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

ROIC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=218.4 * ( 1 - -269.08% )/( (1612.6 + 1794.6)/ 2 )
=806.07072/1703.6
=47.32 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2024) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Insulet  (NAS:PODD) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Insulet's WACC % is 11.66%. Insulet's ROIC % is 24.84% (calculated using TTM income statement data). Insulet generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases. Insulet earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Insulet ROIC % Related Terms

Thank you for viewing the detailed overview of Insulet's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Insulet Business Description

Traded in Other Exchanges
Address
100 Nagog Park, Acton, MA, USA, 01720
Insulet was founded in 2000 with the goal of making continuous subcutaneous insulin infusion therapy for diabetes easier to use. The result was the Omnipod system, which consists of a small disposable insulin infusion device and that can be operated through a smartphone to control dosage. Since the Omnipod was approved by the U.S. Food and Drug Administration in 2005, approximately 425,000 insulin-dependent diabetics are using it worldwide.
Executives
Jessica Hopfield director C/O 600 TECHNOLOGY PARK DRIVE, SUITE 200, BILLERICA MA 01821
Timothy J Scannell director 2825 AIRVIEW BOULEVARD, KALAMAZOO MI 49002
Mark N Field officer: SVP & Chief Technology Officer C/O INSULET CORPORATION, 100 NAGOG PARK, ACTON MA 01720
Lauren Budden officer: VP, CAO and Controller C/O INSULET CORPORATION, 100 NAGOG PARK, ACTON MA 01720
Prem Singh officer: SVP, Global Operations C/O INSULET CORPORATION, 100 NAGOG PARK, ACTON MA 01720
Luciana Borio director C/O EAGLE PHARMACEUTICALS, INC., 50 TICE BLVD., SUITE 315, WOODCLIFF LAKE NJ 07677
Shacey Petrovic officer: CCO 600 TECHNOLOGY PARK DRIVE, SUITE 200, BILLERICA MA 01821
James Hollingshead director C/O RESMED INC., 9001 SPECTRUM CENTER BOULEVARD, SAN DIEGO CA 92123
Wayde D. Mcmillan officer: EVP, CFO C/O INSULET CORPORATION, 100 NAGOG PARK, ACTON MA 01720
Dan Manea officer: SVP, Chief HR Officer C/O INSULET CORPORATION, 100 NAGOG PARK, ACTION MA 01720
Michael R Minogue director 22 CHERRY HILL DR, C/O ABIOMED INC, DANVERS MA 01923
Laetitia Cousin officer: SVP, Reg, Quality & Compliance C/O INSULET CORPORATION, 100 NAGOG PARK, ACTON MA 01720
Charles Alpuche officer: SVP, Global Manufacturing C/O INSULET CORPORATION, 600 TECHNOLOGY PARK DRIVE, SUITE 200, BILLERICA MA 01821
Bret Christensen officer: SVP and CCO 600 TECHNOLOGY PARK DRIVE, SUITE 200, BILLERICA MA 01821
Michael P Spears officer: SVP, Quality and Regulatory C/O INSULET CORPORATION, 600 TECHNOLOGY PARK DRIVE, SUITE 200, BILLERICA MA 01821