Inspire Medical Systems Inc (INSP)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	13,643
Inventory	US$ in thousands	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	5,834
Inventory turnover		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	2.34

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $629,954K ÷ $67,432K
= 9.34

Inspire Medical Systems Inc's inventory turnover has shown fluctuations over the past several quarters. The inventory turnover ratio, which measures how many times a company's inventory is sold and replaced over a period, has ranged from as low as 2.34 to as high as 32.70.

In recent quarters, the inventory turnover ratio has been trending downwards from its peak of 32.70 in December 2022 to 9.34 in September 2024. This may indicate that the company is holding more inventory relative to its sales volumes. A lower inventory turnover ratio could suggest potential issues with managing inventory levels efficiently, potentially leading to higher carrying costs and a risk of obsolescence.

The company should assess its inventory management practices to optimize inventory levels and improve the turnover ratio. However, it is essential to consider industry norms when evaluating inventory turnover, as ratios can vary significantly across different sectors.