Inspire Medical Systems Inc (INSP)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	624,799	406,179	231,266	113,364	82,050
Receivables	US$ in thousands	89,884	61,228	34,179	25,063	13,131
Receivables turnover		6.95	6.63	6.77	4.52	6.25

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $624,799K ÷ $89,884K
= 6.95

The receivables turnover ratio for Inspire Medical Systems Inc has shown a generally increasing trend over the past five years, reflecting the company's efficiency in collecting payments from customers. The ratio improved from 6.25 in 2019 to 6.95 in 2023, indicating that the company's ability to efficiently convert its accounts receivable into cash has strengthened.

A higher receivables turnover ratio suggests that the company is collecting payments more quickly, which can be a positive sign of effective credit and collection policies. This improvement over the years indicates that Inspire Medical Systems Inc has been managing its receivables more effectively, potentially reducing the risk of bad debts and improving its cash flow position.

Overall, the increasing trend in the receivables turnover ratio for Inspire Medical Systems Inc is a positive indicator of the company's financial health and operational efficiency in managing its accounts receivable.