Inspire Medical Systems Inc (INSP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 84.68% | 84.54% | 84.14% | 86.53% | 86.23% |
| Operating profit margin | 4.49% | -6.45% | -11.72% | -17.23% | -49.58% |
| Pretax margin | 7.28% | -3.19% | -10.90% | -18.15% | -50.36% |
| Net profit margin | 6.67% | -3.39% | -11.05% | -18.18% | -50.46% |
Inspire Medical Systems Inc's profitability ratios exhibit varying trends over the five-year period from 2020 to 2024.
1. Gross Profit Margin:
- The gross profit margin remained relatively stable, ranging from 84.14% in 2022 to 86.68% in 2024.
- This indicates that the company is effectively managing its production costs and generating a high percentage of revenue after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin showed significant improvement from a negative figure of -49.58% in 2020 to a positive 4.49% in 2024.
- This indicates that the company has been able to control its operating expenses more efficiently and generate profit from its core business operations.
3. Pretax Margin:
- The pretax margin also displayed a positive trend, increasing from a negative figure of -50.36% in 2020 to 7.28% in 2024.
- This improvement indicates that the company's profitability before taxes has been on an upward trajectory, reflecting better financial performance over the years.
4. Net Profit Margin:
- The net profit margin followed a similar pattern to the pretax margin, with steady improvement from -50.46% in 2020 to 6.67% in 2024.
- This ratio indicates the percentage of revenue that translates into profit after accounting for all expenses, including taxes. The positive trend suggests that the company has been successful in managing its overall profitability.
Overall, the improving trend in operating, pretax, and net profit margins reflects Inspire Medical Systems Inc's efforts to enhance operational efficiency and financial performance over the years. However, it is important for the company to sustain this positive momentum to ensure continued profitability and growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.46% | -5.95% | -8.43% | -13.50% | -19.99% |
| Return on assets (ROA) | 6.62% | -3.13% | -7.95% | -14.25% | -20.34% |
| Return on total capital | 5.23% | -3.48% | -8.59% | -16.27% | -21.60% |
| Return on equity (ROE) | 7.76% | -3.69% | -9.05% | -18.36% | -24.90% |
Inspire Medical Systems Inc's profitability ratios have shown a general improvement over the period from 2020 to 2024.
- Operating Return on Assets (Operating ROA): The company's Operating ROA has experienced a consistent decrease from -19.99% in 2020 to -5.95% in 2023, followed by a notable improvement to 4.46% in 2024. This indicates that the company's operational efficiency in generating profits from its assets has been on an upward trend.
- Return on Assets (ROA): Inspire Medical Systems Inc's ROA also displays a positive trend, with a decrease from -20.34% in 2020 to 6.62% in 2024. This metric reflects the company's ability to generate profits relative to its total assets, and the increasing values indicate an enhancement in asset utilization efficiency.
- Return on Total Capital: The Return on Total Capital ratio has shown improvement as well, starting at -21.60% in 2020 and reaching 5.23% in 2024. This metric assesses the company's profitability in relation to its total capital, including both debt and equity, indicating an enhanced return on the invested capital.
- Return on Equity (ROE): Inspire Medical Systems Inc's ROE has demonstrated a gradual improvement from -24.90% in 2020 to 7.76% in 2024. This metric signifies the profitability generated for the company's shareholders' equity, and the positive values suggest a growing return for equity investors over the years.
Overall, the increasing trends in these profitability ratios indicate a positive trajectory for Inspire Medical Systems Inc, showcasing improvements in operational efficiency, asset utilization, capital returns, and returns for equity holders.