Inspire Medical Systems Inc (INSP)

Receivables turnover

		Dec 31, 2024	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
Revenue (ttm)	US$ in thousands	802,804	755,594	705,705	660,912	624,799	570,191	525,421	465,221	406,179	346,139	298,755	260,292	231,266	199,415	173,576	132,804	113,797	94,694	80,247	86,622
Receivables	US$ in thousands	93,068	89,743	79,716	72,333	89,884	71,460	63,500	59,766	61,228	48,498	40,380	34,544	34,179	26,675	24,914	21,646	25,063	21,101	10,235	11,032
Receivables turnover		8.63	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

December 31, 2024 calculation

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

The receivables turnover of Inspire Medical Systems Inc has shown fluctuating trends over the past few years, ranging from a low of 4.49 in September 2020 to a high of 9.14 in March 2024. This ratio indicates how efficiently the company is able to collect payments from its customers. A higher turnover ratio generally suggests that the company is efficient in converting its accounts receivable into cash.

The average receivables turnover for the period under review is approximately 7.28, indicating that, on average, the company collected its outstanding receivables approximately 7.28 times within a given accounting period. This implies that the company has been moderately effective in managing its accounts receivable over the years.

It is important to monitor the trends in receivables turnover over time to ensure that the company is maintaining a healthy balance between extending credit to customers and collecting payments promptly. Further analysis and comparison with industry benchmarks may provide additional insights into the efficiency of the company's accounts receivable management.