Inspire Medical Systems Inc (INSP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 84.54% | 84.14% | 86.53% | 86.23% | 83.37% |
| Operating profit margin | -6.45% | -11.72% | -17.23% | -49.58% | -42.53% |
| Pretax margin | -3.19% | -10.90% | -18.15% | -50.36% | -40.47% |
| Net profit margin | -3.39% | -11.05% | -18.18% | -50.46% | -40.52% |
Inspire Medical Systems Inc's profitability ratios paint a mixed picture of the company's performance over the past five years. The gross profit margin has remained relatively healthy, with figures ranging from 83.37% to 86.53%, indicating efficient production and cost management.
However, the operating profit margin and pretax margin show a less positive trend, declining significantly over the years. The operating profit margin moved from -42.53% in 2019 to -6.45% in 2023, while the pretax margin improved from -50.36% in 2020 to -3.19% in 2023. These figures suggest that while the company has been able to control costs to some extent, it still faces challenges in generating consistent operating and pre-tax profits.
The net profit margin also shows a similar trend, incurring losses in all years analyzed. Although there was a slight improvement in the net profit margin from -50.46% in 2020 to -3.39% in 2023, it remains negative. This indicates that the company's overall profitability is still under pressure, despite some progress in recent years.
In conclusion, while Inspire Medical Systems Inc has shown some improvement in managing costs and reducing losses, the company still faces challenges in achieving positive profitability. Management may need to focus on enhancing operational efficiency and revenue generation strategies to drive sustainable profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -5.95% | -8.43% | -13.50% | -19.99% | -19.25% |
| Return on assets (ROA) | -3.13% | -7.95% | -14.25% | -20.34% | -18.34% |
| Return on total capital | -3.48% | -8.59% | -16.27% | -21.60% | -18.91% |
| Return on equity (ROE) | -3.69% | -9.05% | -18.36% | -24.90% | -23.77% |
Inspire Medical Systems Inc's profitability ratios have shown some improvements over the past five years.
1. Operating return on assets (Operating ROA) has improved from -19.25% in 2019 to -5.95% in 2023, indicating that the company's operating performance relative to its assets has become less negative over the years.
2. Return on assets (ROA) has also shown improvement, moving from -18.34% in 2019 to -3.13% in 2023. This indicates that the company has been able to generate more profit from its assets over time.
3. Return on total capital has shown a decreasing trend, from -18.91% in 2019 to -3.48% in 2023. This ratio measures the overall profitability of the company's capital, including debt and equity.
4. Return on equity (ROE) has also shown improvement, with a decrease from -23.77% in 2019 to -3.69% in 2023. ROE reflects how well the company is generating profit from shareholders' equity.
Overall, the improving trend in Inspire Medical Systems Inc's profitability ratios, particularly in ROA and ROE, suggests that the company is becoming more efficient in generating profits relative to its assets and equity. However, the company still has room for improvement in terms of returning profit on total capital.