Inspire Medical Systems Inc (INSP)

Quick 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 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
Receivables US$ in thousands 93,068 89,743 79,716 72,333 89,884 71,460 63,500 59,766 61,228 48,498 40,380 34,544 34,179 26,675 24,914 21,646 25,063 21,101 10,235 11,032
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
Quick ratio 6.09 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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($150,150K + $295,396K + $93,068K) ÷ $88,501K
= 6.09

The quick ratio of Inspire Medical Systems Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory.

The quick ratio started at a very high level of 10.70 as of March 31, 2020, indicating a strong ability to cover current liabilities with liquid assets. However, it subsequently increased significantly to 19.38 by June 30, 2020, before declining to 5.05 by June 30, 2022. This decrease could suggest potential strain on the company's short-term liquidity position.

There were fluctuations in the quick ratio over the following quarters, with some improvement seen towards the end of the period. As of December 31, 2024, the quick ratio stood at 6.09. Overall, while the quick ratio showed variability, it generally remained above 1.0 throughout the period, indicating that the company had sufficient liquid assets to cover its current liabilities.

It is important for Inspire Medical Systems Inc to maintain a healthy quick ratio to ensure it can meet its short-term obligations and manage liquidity effectively in the future.