Inspire Medical Systems Inc (INSP)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	659,193	629,954	605,893	582,236	551,534	536,862	498,922	445,311	388,703	360,941	310,519	269,275	236,894	228,455	198,315	164,435	146,297	122,750	80,779	49,738
Inventory	US$ in thousands	80,118	67,432	59,025	48,974	33,885	26,115	20,840	15,663	11,886	15,146	21,857	22,198	17,231	15,574	13,296	11,385	8,479	8,966	9,966	7,245
Inventory turnover		8.23	9.34	10.27	11.89	16.28	20.56	23.94	28.43	32.70	23.83	14.21	12.13	13.75	14.67	14.92	14.44	17.25	13.69	8.11	6.87

December 31, 2024 calculation

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

Inspire Medical Systems Inc's inventory turnover has shown a fluctuating trend over the years based on the provided data. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced during a specific period.

From March 31, 2020, to December 31, 2022, the inventory turnover ratio steadily increased, indicating an improvement in inventory management efficiency. The ratio peaked at 32.70 on December 31, 2022, suggesting that the company was selling and replacing its inventory more than 32 times during that period.

However, from March 31, 2023, onward, the inventory turnover ratio started to decline gradually. This could indicate a slowdown in sales or potentially excess inventory on hand. By December 31, 2024, the inventory turnover ratio had decreased to 8.23, which may suggest a longer time for the company to sell and replace its inventory, compared to previous periods.

Overall, Inspire Medical Systems Inc should continue monitoring its inventory turnover ratio to ensure optimal inventory management practices and to address any potential inefficiencies in handling inventory levels.