Inspire Medical Systems Inc (INSP)

Days of sales outstanding (DSO)

		Dec 31, 2024	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
Receivables turnover		8.63	8.42	8.85	9.14	6.95	7.98	8.27	7.78	6.63	7.14	7.40	7.54	6.77	7.48	6.97	6.14	4.54	4.49	7.84	7.85
DSO	days	42.31	43.35	41.23	39.95	52.51	45.74	44.11	46.89	55.02	51.14	49.33	48.44	53.94	48.82	52.39	59.49	80.39	81.33	46.55	46.49

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.63
= 42.31

The Days of Sales Outstanding (DSO) for Inspire Medical Systems Inc have shown some fluctuations over the given period. From March 31, 2020, to March 31, 2024, the DSO ranged from a low of 39.95 days to a high of 81.33 days.

The trend indicates that there was an initial decline in DSO from March 2020 to June 2020 before a significant increase by the end of September 2020. However, from September 2020 to March 2024, there was a general downward trend in DSO, implying that the company improved its collection process or had more efficient accounts receivable management during this period.

Overall, a DSO of around 45-55 days is considered healthy for most companies, striking a balance between aggressive receivables management and maintaining good customer relationships. Inspire Medical Systems Inc should continue monitoring its DSO to ensure efficient cash flow management and timely collections from customers.