Inspire Medical Systems Inc (INSP)

Working capital 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
Total current assets US$ in thousands 630,806 593,739 530,032 268,537 269,869
Total current liabilities US$ in thousands 88,501 78,105 61,186 41,307 20,725
Working capital turnover 1.48 1.21 0.87 1.02 0.46

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $802,804K ÷ ($630,806K – $88,501K)
= 1.48

The working capital turnover for Inspire Medical Systems Inc has shown an upward trend over the past few years, increasing from 0.46 in December 31, 2020, to 1.48 in December 31, 2024. This indicates that the company has been able to efficiently manage its working capital to generate sales revenue. A working capital turnover ratio above 1 typically suggests that the company is effectively utilizing its working capital to support its operations and drive sales. However, it is important to continue monitoring this ratio to ensure that there are no liquidity issues or inefficiencies in the management of working capital.