Inspire Medical Systems Inc (INSP)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	89,884	61,228	34,179	25,063	13,131
Total current liabilities	US$ in thousands	78,105	61,186	41,307	20,725	16,856
Quick ratio		7.05	8.38	6.02	12.52	9.65

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($185,537K + $274,838K + $89,884K) ÷ $78,105K
= 7.05

The quick ratio of Inspire Medical Systems Inc has fluctuated over the past five years, ranging from 6.02 in 2021 to 12.52 in 2020. A quick ratio above 1 typically indicates that a company has enough liquid assets to cover its short-term liabilities.

In 2023, the quick ratio stands at 7.05, suggesting that the company has $7.05 in liquid assets available to cover each $1 of its current liabilities. This indicates that Inspire Medical Systems Inc has a strong ability to meet its short-term obligations using its most liquid assets.

The trend in the quick ratio over the years shows fluctuation but generally indicates a healthy liquidity position for the company, although it decreased slightly from the previous year. Additional analysis and comparison with industry standards would provide further insights into the company's liquidity management and financial health.