Inspire Medical Systems Inc (INSP)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 802,804 755,594 705,705 660,912 624,799 570,191 525,421 465,221 406,179 346,139 298,755 260,292 231,266 199,415 173,576 132,804 113,797 94,694 80,247 86,622
Property, plant and equipment US$ in thousands 71,925 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
Fixed asset turnover 11.16 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

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $802,804K ÷ $71,925K
= 11.16

The fixed asset turnover ratio measures how efficiently a company is generating sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

Analyzing the fixed asset turnover of Inspire Medical Systems Inc over the period from March 31, 2020, to December 31, 2024, we can observe a general decreasing trend in the ratio. The ratio started at a high of 27.83 in March 2020 and steadily declined to 11.16 by December 31, 2024. This decline indicates a potential decrease in the company's ability to generate sales revenue from its fixed assets efficiently over the years.

It is essential to investigate further to understand the reasons behind this decline in the fixed asset turnover ratio. Possible factors could include underutilization of fixed assets, inefficient asset management, or changes in the company's business model impacting asset utilization. Management may need to address these issues to improve the company's efficiency in generating sales from its fixed assets and maintain long-term profitability.