Inspire Medical Systems Inc (INSP)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	150,150	147,512	188,035	175,416	185,537	329,897	467,051	442,132	441,592	417,808	186,570	203,291	214,467	210,200	176,541	182,348	190,518	178,705	211,237	76,117
Short-term investments	US$ in thousands	295,396	263,475	251,629	265,945	274,838	134,317	0	9,927	9,821	9,741	9,752	—	0	0	31,295	43,796	43,844	55,932	31,322	59,608
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
Cash ratio		5.03	5.53	6.70	6.12	5.89	6.63	7.00	7.55	7.38	8.67	4.19	4.71	5.19	6.26	8.54	11.64	11.31	12.89	18.60	9.89

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($150,150K + $295,396K) ÷ $88,501K
= 5.03

The cash ratio measures a company's ability to pay off its current liabilities using only its cash and cash equivalents. A higher cash ratio indicates that a company has more liquid assets available to cover its short-term obligations.

Based on the data provided for Inspire Medical Systems Inc, the cash ratio has fluctuated over the financial periods. From March 31, 2020, to June 30, 2020, the cash ratio increased significantly from 9.89 to 18.60, indicating a substantial improvement in the company's liquidity position. However, the ratio decreased in the subsequent quarters and continued to fluctuate between 4.19 to 8.67 until September 30, 2022.

After September 30, 2022, the cash ratio started to decline consistently, reaching its lowest point of 5.03 by December 31, 2024. This downward trend suggests that the company may be experiencing challenges in maintaining a sufficient level of cash and cash equivalents relative to its current liabilities.

Overall, the cash ratio for Inspire Medical Systems Inc has shown variability over the years, with both peaks and troughs. Investors and stakeholders should closely monitor this ratio to assess the company's short-term liquidity position and its ability to meet its financial obligations.