Inspire Medical Systems Inc (INSP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 624,799 | 406,179 | 231,266 | 113,364 | 82,050 |
| Property, plant and equipment | US$ in thousands | 39,984 | 17,249 | 8,486 | 5,311 | 3,045 |
| Fixed asset turnover | 15.63 | 23.55 | 27.25 | 21.35 | 26.95 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $624,799K ÷ $39,984K
= 15.63
The fixed asset turnover of Inspire Medical Systems Inc has shown variability over the past five years, ranging from a low of 15.63 in 2023 to a high of 27.25 in 2021. The fixed asset turnover ratio measures the efficiency with which the company generates sales revenue from its investment in fixed assets. A higher ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.
The decrease in fixed asset turnover from 2021 to 2023 suggests that the company may be facing challenges in generating sales relative to its investment in fixed assets. It could indicate inefficient utilization of fixed assets or a slowdown in sales growth. On the other hand, the comparatively high ratios in 2021, 2022, and 2019 indicate that the company was more efficient in utilizing its fixed assets to generate revenue during those years.
Overall, further investigation into the factors influencing the variations in fixed asset turnover is necessary to determine the underlying causes and assess the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2023