Inspire Medical Systems Inc (INSP)

Working capital 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
Total current assets	US$ in thousands	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	170,636
Total current liabilities	US$ in thousands	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	16,856
Working capital turnover		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	0.53

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $755,594K ÷ ($582,520K – $74,264K)
= 1.49

The working capital turnover of Inspire Medical Systems Inc has shown a fluctuating trend over the past few quarters. It increased from 0.32 in December 2019 to 1.49 in September 2024, indicating an improvement in the company's efficiency in generating sales revenue relative to its working capital.

The ratio peaked at 1.49 in September 2024, suggesting that the company effectively utilized its working capital to support sales growth during that period. However, it should be noted that the ratio has shown some variability, with fluctuations observed in different quarters.

Overall, the increasing trend in the working capital turnover ratio signifies a positive development in the company's operational efficiency and management of working capital resources. Investors and stakeholders may view this as a favorable indication of the company's ability to efficiently convert working capital into sales revenue.