Inspire Medical Systems Inc (INSP)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	551,334	388,703	237,094	146,297	13,643
Inventory	US$ in thousands	33,885	11,886	17,231	8,479	5,834
Inventory turnover		16.27	32.70	13.76	17.25	2.34

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $551,334K ÷ $33,885K
= 16.27

Inspire Medical Systems Inc's inventory turnover has fluctuated over the past five years, ranging from a low of 2.34 in 2019 to a high of 32.70 in 2022. In 2023, the inventory turnover stood at 16.27. This indicates that the company's ability to manage and sell its inventory improved significantly in 2022 but dipped in 2023. A higher inventory turnover ratio generally indicates more efficient inventory management and faster sales of inventory. However, it's essential to consider industry norms and company-specific factors when evaluating the effectiveness of inventory turnover. Overall, further analysis is needed to understand the reasons behind these fluctuations and their impacts on the company's operations and financial performance.