Inspire Medical Systems Inc (INSP)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	755,594	705,705	660,912	624,799	570,191	525,421	465,221	406,179	346,139	298,755	260,292	231,266	199,415	173,576	132,804	113,797	94,694	80,247	86,622	82,050
Property, plant and equipment	US$ in thousands	67,447	61,701	52,281	39,984	32,249	25,217	20,920	17,249	14,134	11,015	9,334	8,486	7,915	7,066	6,791	5,311	4,309	3,307	3,113	3,045
Fixed asset turnover		11.20	11.44	12.64	15.63	17.68	20.84	22.24	23.55	24.49	27.12	27.89	27.25	25.19	24.56	19.56	21.43	21.98	24.27	27.83	26.95

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $755,594K ÷ $67,447K
= 11.20

The fixed asset turnover ratio of Inspire Medical Systems Inc has exhibited a consistently increasing trend over the past 20 quarters, reflecting the company's ability to generate revenue relative to its investment in fixed assets. The ratio has shown significant improvement, more than doubling from 11.20 in September 2020 to 27.83 in September 2022, before slightly tapering off to 26.95 in June 2023.

The company's fixed asset turnover peaked at 27.89 in June 2022, indicating that for every dollar of fixed assets invested, the company generated $27.89 in revenue. This suggests efficient utilization of fixed assets to drive sales and enhance operational efficiency.

Even though the ratio experienced fluctuations over the quarters, it generally remained at relatively high levels, indicating effective management of fixed assets to support revenue generation throughout the period under review. The latest ratio of 26.95 in September 2023 still demonstrates a strong ability to generate revenue from fixed assets.

Overall, the upward trend in the fixed asset turnover ratio of Inspire Medical Systems Inc indicates a positive operational performance in utilizing fixed assets efficiently to drive revenue growth and potentially boost profitability.