Inspire Medical Systems Inc (INSP)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 593,739 | 530,032 | 268,537 | 269,869 | 170,636 |
| Total current liabilities | US$ in thousands | 78,105 | 61,186 | 41,307 | 20,725 | 16,856 |
| Current ratio | 7.60 | 8.66 | 6.50 | 13.02 | 10.12 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $593,739K ÷ $78,105K
= 7.60
The current ratio reflects Inspire Medical Systems Inc's ability to meet its short-term financial obligations with its current assets. Over the past five years, the company's current ratio has fluctuated.
As of December 31, 2023, the current ratio stands at 7.60, indicating that the company had $7.60 in current assets for every $1 of current liabilities. This ratio has decreased from the previous year, suggesting a potential weakening of the company's liquidity position.
Comparing to earlier years, the current ratio was highest in 2020 at 13.02 and lowest in 2021 at 6.50. The substantial fluctuations in the current ratio over the years may indicate changes in the company's management of current assets and liabilities, possibly impacting its short-term financial stability.
Overall, while a current ratio above 1 indicates that the company can meet its short-term obligations, the downward trend in Inspire Medical Systems Inc's current ratio in recent years warrants further monitoring of its liquidity position and management of current assets and liabilities.
Peer comparison
Dec 31, 2023