Inspire Medical Systems Inc (INSP)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	802,804	624,799	406,179	231,266	113,364
Receivables	US$ in thousands	93,068	89,884	61,228	34,179	25,063
Receivables turnover		8.63	6.95	6.63	6.77	4.52

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $802,804K ÷ $93,068K
= 8.63

The receivables turnover ratio for Inspire Medical Systems Inc has shown an increasing trend over the past five years. It was reported at 4.52 for the year ending December 31, 2020 and has steadily improved to 8.63 by December 31, 2024. This indicates that the company is collecting its accounts receivable more efficiently each year. A higher receivables turnover ratio suggests that the company is able to convert its credit sales into cash more quickly, which is positive for its liquidity and overall financial health. However, it is important to assess other factors such as the industry average and any specific changes in the company's credit policies or customer base to gain a more comprehensive understanding of the efficiency of its accounts receivable management.