Inspire Medical Systems Inc (INSP)

Payables 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
Payables	US$ in thousands	34,926	33,621	43,802	38,839	40,031	39,961	36,478	26,847	20,305	16,033	17,022	11,665	9,989	8,681	9,057	7,209	6,743	5,103	5,821	4,459
Payables turnover		18.04	18.02	13.29	14.20	13.41	12.49	12.21	14.48	17.78	19.37	15.82	20.31	22.87	22.84	18.16	20.29	18.20	15.83	8.54	3.06

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $629,954K ÷ $34,926K
= 18.04

The payables turnover ratio for Inspire Medical Systems Inc has fluctuated over the past few quarters, ranging from a low of 3.06 to a high of 22.87. The ratio measures how efficiently the company is managing its accounts payable by calculating the number of times a company pays off its average accounts payable balance during a period.

A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which can be a positive sign of strong liquidity and good vendor relationships. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships or indicate cash flow issues.

In the most recent quarter, the payables turnover ratio stood at 18.04, which indicates that the company is managing its accounts payable efficiently by paying off its suppliers approximately 18 times during the period. This is a positive sign of effective working capital management. It is important for investors and stakeholders to monitor this ratio over time to assess the company's payment practices and financial health.