Inspire Medical Systems Inc (INSP)

Working capital 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
Total current assets US$ in thousands 630,806 582,520 607,160 572,214 593,739 569,591 560,076 533,578 530,032 495,544 263,133 262,477 268,537 255,495 249,494 260,784 269,869 266,923 267,108 155,431
Total current liabilities US$ in thousands 88,501 74,264 65,657 72,172 78,105 69,995 66,687 59,868 61,186 49,291 46,853 43,168 41,307 33,591 24,350 19,422 20,725 18,198 13,042 13,717
Working capital turnover 1.48 1.49 1.30 1.32 1.21 1.14 1.06 0.98 0.87 0.78 1.38 1.19 1.02 0.90 0.77 0.55 0.46 0.38 0.32 0.61

December 31, 2024 calculation

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

Inspire Medical Systems Inc's working capital turnover has shown fluctuations over the years, starting at a relatively low level of 0.61 on March 31, 2020, and reaching a peak of 1.49 on September 30, 2024. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

The trend in the working capital turnover ratio shows improvement over the years, with the ratio generally increasing from 2020 to 2024. Higher turnover ratios suggest that the company is effectively managing its working capital to support its operations and generate sales.

However, it is worth noting that there are fluctuations in the ratio throughout the time period, indicating potential changes in the company's efficiency in managing its working capital. For instance, there was a notable decrease in the ratio from March 31, 2022, to September 30, 2022, followed by an increase again in the subsequent periods.

Overall, the increasing trend in the working capital turnover ratio reflects positively on Inspire Medical Systems Inc's efficiency in utilizing its working capital to support its sales activities and operations.