Inspire Medical Systems Inc (INSP)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.63 | 6.95 | 6.63 | 6.77 | 4.52 | |
| DSO | days | 42.31 | 52.51 | 55.02 | 53.94 | 80.70 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.63
= 42.31
Inspire Medical Systems Inc's Days of Sales Outstanding (DSO) has shown a positive trend over the years, reflecting effective management of accounts receivable. The DSO decreased from 80.70 days as of December 31, 2020, to 42.31 days as of December 31, 2024. This indicates that the company has been able to collect receivables more efficiently, possibly due to improved credit policies or better collections practices.
A decreasing DSO suggests that the company is converting its accounts receivable into cash at a quicker pace, which is generally a positive indicator of operational efficiency and liquidity. Inspire Medical Systems Inc's ability to reduce its DSO over this period may signify strong customer relationships and timely collections, contributing to improved cash flow and working capital management.
Overall, the declining trend in DSO for Inspire Medical Systems Inc reflects positively on the company's financial health and operational effectiveness in managing its accounts receivable.
Peer comparison
Dec 31, 2024