Inspire Medical Systems Inc (INSP)

Payables 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
Payables	US$ in thousands	38,839	26,847	11,665	7,209	4,459
Payables turnover		14.20	14.48	20.33	20.29	3.06

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $551,334K ÷ $38,839K
= 14.20

The payables turnover ratio of Inspire Medical Systems Inc has shown a fluctuating trend over the past five years.

In 2019, the payables turnover was 3.06, indicating that the company took approximately 3.06 times to pay off its accounts payable during that year. This relatively low ratio may suggest a longer payment cycle or inefficient management of accounts payables.

However, in the subsequent years, the payables turnover ratio improved significantly. In 2020, the ratio increased to 20.29, and in 2021, it further increased to 20.33, indicating a substantial improvement in the company's ability to pay off its accounts payables quickly. This could be attributed to more efficient management of payables or negotiations with suppliers for better payment terms.

In the following years, 2022 and 2023, the payables turnover ratio slightly decreased to 14.48 and 14.20, respectively. This decrease could be due to changes in the company's payables management policies or increased reliance on longer payment terms.

Overall, the trend in payables turnover suggests that Inspire Medical Systems Inc has made progress in managing its accounts payables efficiently over the years, with occasional fluctuations that may require further analysis to understand the underlying reasons.