Inspire Medical Systems Inc (INSP)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	185,537	441,592	214,467	190,518	22,860
Short-term investments	US$ in thousands	274,838	9,821	0	43,844	126,605
Total current liabilities	US$ in thousands	78,105	61,186	41,307	20,725	16,856
Cash ratio		5.89	7.38	5.19	11.31	8.87

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($185,537K + $274,838K) ÷ $78,105K
= 5.89

The cash ratio of Inspire Medical Systems Inc has shown some fluctuations over the past five years. The ratio was 5.89 at the end of 2023, indicating that the company had $5.89 in cash and cash equivalents for every dollar of current liabilities. This represented a slight decrease from the previous year, where the ratio was 7.38.

In comparison to 2021 and 2020, the cash ratio of 5.19 and 11.31 respectively, the current year's ratio falls within that range. The significant decrease from 2020 to 2021 suggests a change in the company's liquidity position. The cash ratio of 8.87 in 2019 was higher compared to the most recent year, indicating that the company may have had a more conservative approach to managing liquidity back then.

Overall, while the cash ratio of Inspire Medical Systems Inc has shown variability, it is important to consider the company's overall liquidity position and ability to meet its short-term obligations. Further analysis of the company's cash flows and cash management practices may provide additional insights into its financial health.