Inspire Medical Systems Inc (INSP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 7.84 | 9.25 | 7.93 | 7.60 | 8.14 | 8.40 | 8.91 | 8.66 | 10.05 | 5.62 | 6.08 | 6.50 | 7.61 | 10.25 | 13.43 | 13.02 | 14.67 | 20.48 | 11.33 | 10.12 |
| Quick ratio | 6.74 | 7.91 | 7.12 | 7.05 | 7.65 | 7.96 | 8.55 | 8.38 | 9.66 | 5.05 | 5.51 | 6.02 | 7.05 | 9.56 | 12.76 | 12.52 | 14.05 | 19.38 | 10.70 | 9.65 |
| Cash ratio | 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 | 8.87 |
Inspire Medical Systems Inc's liquidity ratios have shown a positive trend over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has been consistently high, ranging from 5.62 to 10.05. This indicates that the company has ample current assets to meet its short-term liabilities, with the current ratio peaking at 14.67 in the most recent quarter.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been strong, ranging from 5.05 to 9.66. This suggests that the company has a solid ability to meet its short-term obligations using its most liquid assets.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has displayed a consistent upward trend, reflecting the company's ability to cover its short-term liabilities with its readily available cash resources. The cash ratio ranged from 4.19 to 8.67, with the highest value of 12.89 in the most recent quarter.
Overall, the increasing trend in all three liquidity ratios indicates that Inspire Medical Systems Inc has a strong liquidity position, with ample resources to cover its short-term obligations and ensure smooth operations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 62.19 | 56.53 | 43.19 | 49.23 | 36.28 | 30.12 | 29.83 | 40.97 | 45.92 | 56.18 | 55.46 | 62.52 | 57.75 | 60.88 | 64.66 | 83.56 | 87.94 | 68.53 | 56.94 | 95.20 |
The cash conversion cycle of Inspire Medical Systems Inc has shown fluctuation over the periods examined. The cash conversion cycle represents the time it takes for a company to convert its investment in inventory and other resources into cash received from sales. Inspire Medical Systems Inc's cash conversion cycle has ranged from a low of 29.83 days to a high of 95.20 days.
Analyzing the trend over the periods, there seems to be some volatility in the cash conversion cycle. The company experienced a significant increase in the cycle in the latter part of 2020 and the beginning of 2021, reaching a peak of 95.20 days, which indicates a longer period to convert investments into cash. However, there has been a gradual improvement since then, with the cycle trending downwards.
In recent periods, the company has managed to reduce its cash conversion cycle, indicating more efficient management of its working capital. A lower cash conversion cycle suggests that the company is able to generate cash quickly from its operational activities, implying better liquidity and potentially improved profitability.
Overall, while there have been fluctuations in the cash conversion cycle of Inspire Medical Systems Inc, the recent trend of decreasing cycle duration is a positive sign of enhanced operational efficiency and potentially improved cash flow management. Continued monitoring of this metric will be essential to assess the company's ongoing financial health and efficiency.