Inspire Medical Systems Inc (INSP)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		8.23	16.27	32.70	13.76	17.25
DOH	days	44.36	22.43	11.16	26.53	21.15

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.23
= 44.36

To analyze Inspire Medical Systems Inc's days of inventory on hand (DOH) over the past five years, we observe the following trends:

1. In December 31, 2020, the company held inventory for an average of 21.15 days before selling it.
2. By December 31, 2021, the DOH increased to 26.53 days, indicating a longer period of inventory turnover.
3. However, in December 31, 2022, the DOH decreased significantly to 11.16 days, suggesting an improvement in inventory management efficiency.
4. Subsequently, by December 31, 2023, the DOH rose to 22.43 days, indicating a slight increase in inventory holding period.
5. Finally, by December 31, 2024, the DOH spiked to 44.36 days, signifying a significant decline in inventory turnover efficiency and potentially raising concerns about excess inventory levels or slowing sales.

Overall, while there have been fluctuations in Inspire Medical Systems Inc's DOH over the five-year period, it is essential for the company to closely monitor inventory levels to ensure optimal use of resources and improve operational efficiency.