Inspire Medical Systems Inc (INSP)

Days of inventory on hand (DOH)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		9.34	10.27	11.89	16.28	20.56	23.94	28.43	32.70	23.83	14.21	12.13	13.75	14.67	14.92	14.44	17.25	13.69	8.11	6.87	2.34
DOH	days	39.07	35.56	30.70	22.42	17.75	15.25	12.84	11.16	15.32	25.69	30.09	26.55	24.88	24.47	25.27	21.15	26.66	45.03	53.17	156.08

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.34
= 39.07

The Days of Inventory on Hand (DOH) ratio for Inspire Medical Systems Inc has shown a fluctuating trend over the past few years.

The company had a high DOH of 156.08 days at the end of 2019, indicating that it took a long time for the company to sell its inventory during that period. However, since then, the DOH ratio has been steadily decreasing, reaching 39.07 days at the end of September 2024. This implies that the company has been managing its inventory more efficiently in recent years.

The decreasing trend in the DOH ratio suggests that Inspire Medical Systems Inc has been improving its inventory management practices, possibly by streamlining its production processes, enhancing demand forecasting, or implementing just-in-time inventory techniques. A lower DOH generally indicates better inventory turnover and liquidity, which can lead to improved profitability and cash flow for the company.

Overall, the decreasing trend in the Days of Inventory on Hand ratio for Inspire Medical Systems Inc signals improved efficiency in managing its inventory, which could positively impact its financial performance in the future.