Inspire Medical Systems Inc (INSP)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 8.42 8.85 9.14 6.95 7.98 8.27 7.78 6.63 7.14 7.40 7.54 6.77 7.48 6.97 6.14 4.54 4.49 7.84 7.85 6.25
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
Working capital turnover 1.49 1.30 1.32 1.21 1.14 1.06 0.98 0.87 0.78 1.38 1.19 1.02 0.90 0.77 0.55 0.46 0.38 0.32 0.61 0.53

Inspire Medical Systems Inc's activity ratios provide insights into the efficiency of the company's operations and management of its assets and liabilities.

1. Inventory turnover: The trend in inventory turnover indicates the number of times inventory is sold and replaced over a specific period. Inspire Medical Systems Inc's inventory turnover has generally been decreasing over the past few quarters, suggesting a slower rate of inventory sales and turnover. However, the company still maintains a relatively high turnover rate, indicating effective inventory management.

2. Receivables turnover: The receivables turnover ratio reflects how quickly the company collects payments from customers. Inspire Medical Systems Inc has shown stability in its receivables turnover over the periods, with a moderate turnover rate. This suggests that the company efficiently collects payments from its customers within a reasonable timeframe.

3. Payables turnover: The payables turnover ratio measures how quickly the company pays off its suppliers. Inspire Medical Systems Inc's payables turnover has fluctuated, indicating variability in the company's payment practices. However, the overall trend shows that the company manages its payables effectively, with a reasonable turnover rate.

4. Working capital turnover: The working capital turnover ratio highlights the efficiency of the company in utilizing its working capital to generate sales. Inspire Medical Systems Inc's working capital turnover has shown fluctuations but has generally been low, indicating that the company may not be effectively using its working capital to generate revenue.

Overall, while Inspire Medical Systems Inc demonstrates efficiency in managing its inventory and payables, there may be room for improvement in optimizing working capital utilization and enhancing receivables turnover for increased profitability and operational effectiveness.

Average number of days

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
Days of inventory on hand (DOH) days 39.07 35.56 30.70 22.42 17.75 15.25 12.84 11.16 15.32 25.69 30.09 26.55 24.88 24.47 25.27 21.15 26.66 45.03 53.17 156.08
Days of sales outstanding (DSO) days 43.35 41.23 39.95 52.51 45.74 44.11 46.89 55.02 51.14 49.33 48.44 53.94 48.82 52.39 59.49 80.39 81.33 46.55 46.49 58.41
Number of days of payables days 20.24 20.25 27.46 25.70 27.22 29.23 29.90 25.21 20.53 18.85 23.07 17.97 15.96 15.98 20.10 17.99 20.05 23.06 42.72 119.29

Inspire Medical Systems Inc's activity ratios provide valuable insights into its operational efficiency.

Days of Inventory on Hand (DOH) has shown a general decreasing trend, indicating that the company is managing its inventory more efficiently, with the ability to turn over its inventory quicker. This implies improved liquidity and reduced carrying costs.

Days of Sales Outstanding (DSO) have fluctuated over time but have been relatively stable recently. A lower DSO is preferable as it indicates faster collections from customers, improving cash flow and reducing the risk of bad debts.

Number of Days of Payables highlights the company's ability to delay payment to suppliers. The decreasing trend suggests that the company is settling its payables faster, which could impact relationships with suppliers but may also indicate a robust financial position.

Overall, the company seems to be improving its operational efficiency, which is crucial for maintaining a healthy cash flow and profitability. It would be important for Inspire Medical Systems Inc to continue monitoring and managing these activity ratios effectively to support its financial performance.

Long-term

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
Fixed asset turnover 11.20 11.44 12.64 15.63 17.68 20.84 22.24 23.55 24.49 27.12 27.89 27.25 25.19 24.56 19.56 21.43 21.98 24.27 27.83 26.95
Total asset turnover 0.95 0.97 0.96 0.92 0.89 0.85 0.81 0.72 0.66 1.02 0.90 0.78 0.72 0.64 0.49 0.40 0.35 0.30 0.52 0.45

The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. Inspire Medical Systems Inc's fixed asset turnover has shown a generally increasing trend over the recent quarters, indicating that the company is becoming more effective in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all of its assets. Inspire Medical Systems Inc's total asset turnover has fluctuated over the quarters, with a notable increase in the most recent period. This could suggest improved efficiency in utilizing all assets, including both fixed and current assets, to generate revenue.

Overall, the trend in both fixed asset turnover and total asset turnover ratios for Inspire Medical Systems Inc indicates increasing efficiency in generating sales relative to the company's asset base. However, a further analysis of the company's operational performance and capital structure would be necessary to fully assess its long-term operational efficiency.