Inspire Medical Systems Inc (INSP)

Gross profit margin

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
Gross profit (ttm) US$ in thousands 679,818 640,542 598,669 559,467 528,223 479,517 439,999 390,372 341,741 293,235 256,894 225,122 200,115 171,721 149,291 114,079 97,758 81,577 68,352 73,061
Revenue (ttm) US$ in thousands 802,804 755,594 705,705 660,912 624,799 570,191 525,421 465,221 406,179 346,139 298,755 260,292 231,266 199,415 173,576 132,804 113,797 94,694 80,247 86,622
Gross profit margin 84.68% 84.77% 84.83% 84.65% 84.54% 84.10% 83.74% 83.91% 84.14% 84.72% 85.99% 86.49% 86.53% 86.11% 86.01% 85.90% 85.91% 86.15% 85.18% 84.34%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $679,818K ÷ $802,804K
= 84.68%

Inspire Medical Systems Inc has shown a stable trend in its gross profit margin over the period from March 31, 2020, to December 31, 2024. The gross profit margin started at 84.34% in March 2020 and gradually increased to a peak of 86.53% by December 2021, indicating the company's ability to effectively control its production costs and generate profits from its core operations.

However, after reaching its peak in December 2021, the gross profit margin exhibited a slight decline, fluctuating between 83.74% and 86.01% until June 2024. Notably, the gross profit margin declined to 84.14% by December 2022 and further decreased to 83.74% by June 2023, possibly suggesting increased production costs or pricing pressures during these periods.

Moreover, the gross profit margin saw a modest recovery in the subsequent quarters, stabilizing around the range of 84% to 85% by the end of December 2024. This indicates the company's efforts to optimize its cost structure and maintain healthy margins despite some fluctuations in the intervening periods.

Overall, the management of Inspire Medical Systems Inc should continue monitoring and managing its cost of sales effectively to sustain and potentially improve its gross profit margin in the future.