Inspire Medical Systems Inc (INSP)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	659,193	551,334	388,703	237,094	146,297
Inventory	US$ in thousands	80,118	33,885	11,886	17,231	8,479
Inventory turnover		8.23	16.27	32.70	13.76	17.25

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $659,193K ÷ $80,118K
= 8.23

Inspire Medical Systems Inc's inventory turnover has experienced fluctuations over the past five years. In 2020, the company achieved an inventory turnover ratio of 17.25, indicating that its inventory was sold and replaced approximately 17.25 times during the year. However, there was a decline in the inventory turnover ratio in 2021, dropping to 13.76.

The following year, in 2022, the inventory turnover ratio significantly improved to 32.70, suggesting that the company was managing its inventory more efficiently and selling its products at a faster rate. This high turnover rate indicates that the company was able to quickly convert its inventory into sales and generate revenue.

Subsequently, in 2023, the inventory turnover ratio decreased to 16.27, still reflecting a relatively healthy inventory management performance. Nonetheless, in 2024, the ratio experienced a significant decline to 8.23, which could indicate potential issues such as excess inventory levels or a slowdown in sales.

Overall, analyzing the trend in inventory turnover ratios, Inspire Medical Systems Inc has shown a mix of strong and weaker inventory management performances over the years. Regular monitoring and management of inventory levels will be crucial for the company to improve its efficiency and profitability in the future.