Inspire Medical Systems Inc (INSP)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	-40,271	-47,592	-39,850	-56,208	-34,897
Total assets	US$ in thousands	676,811	564,876	295,084	281,189	181,253
Operating ROA		-5.95%	-8.43%	-13.50%	-19.99%	-19.25%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-40,271K ÷ $676,811K
= -5.95%

Inspire Medical Systems Inc's operating return on assets (operating ROA) has shown improvement from -19.25% in 2019 to -5.95% in 2023. Despite the positive trend, the company's operating ROA has remained negative over the five-year period, indicating that the company is not generating significant operating profits relative to its assets. The improvement in operating ROA suggests that the company may be becoming more efficient in generating operating income from its assets. However, the negative values indicate that the company is still facing challenges in generating sufficient operating income to cover the costs associated with its assets. It is important for the company to continue improving its operating ROA to ensure long-term profitability and sustainability.