Inspire Medical Systems Inc (INSP)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 36,083 | -40,271 | -47,592 | -39,850 | -56,208 |
| Revenue | US$ in thousands | 802,804 | 624,799 | 406,179 | 231,266 | 113,364 |
| Operating profit margin | 4.49% | -6.45% | -11.72% | -17.23% | -49.58% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $36,083K ÷ $802,804K
= 4.49%
Inspire Medical Systems Inc's operating profit margin has shown a notable improvement over the past five years. Starting at a significant negative figure of -49.58% in December 2020, the company made strides to reduce its operating losses, with the margin improving to -17.23% by December 2021 and further to -11.72% by December 2022. By December 2023, Inspire Medical Systems managed to decrease its operating profit margin to -6.45%, indicating a positive trend towards profitability.
The most significant improvement came in the latest year, December 2024, where the operating profit margin turned positive at 4.49%. This implies that the company's operating expenses reduced or revenue increased sufficiently to generate operating profits. This positive shift demonstrates Inspire Medical Systems Inc's successful efforts in managing costs and increasing operational efficiency. It is essential for the company to ensure the sustainability of this upward trend in the operating profit margin to enhance its financial performance and create value for its shareholders.
Peer comparison
Dec 31, 2024