Inspire Medical Systems Inc (INSP)

Receivables 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
Revenue (ttm)	US$ in thousands	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	82,050
Receivables	US$ in thousands	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	13,131
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

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $755,594K ÷ $89,743K
= 8.42

The receivables turnover ratio for Inspire Medical Systems Inc has shown variations over the past several quarters. The ratio indicates how many times a company collects its average accounts receivable balance during a period. A higher receivables turnover ratio is generally considered favorable as it suggests that the company is efficient in collecting outstanding receivables.

Analyzing the trend, we observe that the receivables turnover ratio has fluctuated between 4.49 and 9.14 over the past few years. In the most recent quarter ending September 30, 2024, the receivables turnover ratio was 8.42, indicating that the company collected its outstanding receivables approximately 8.42 times during that quarter.

The ratio has generally been on an upward trend since the end of 2019, with some minor fluctuations in between. The higher ratios in more recent quarters, such as 8.85 and 9.14, suggest improving efficiency in collecting accounts receivable. However, it is important to note the decrease in the ratio in the latest quarter compared to the previous quarter, which could indicate a slowdown in collections.

Overall, a consistent and increasing trend in receivables turnover ratio signals effective management of accounts receivable and cash flow. It is essential to monitor this ratio regularly to assess the company's ability to collect outstanding receivables promptly and efficiently.