Inspire Medical Systems Inc (INSP)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 808,383 | 676,811 | 564,876 | 295,084 | 281,189 |
| Operating ROA | 4.46% | -5.95% | -8.43% | -13.50% | -19.99% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $36,083K ÷ $808,383K
= 4.46%
Inspire Medical Systems Inc's operating return on assets (ROA) has exhibited a fluctuating trend over the period from December 31, 2020, to December 31, 2024. The operating ROA started at a negative 19.99% in 2020, indicating that the company's operating income generated from its assets was insufficient to cover its asset base.
Subsequently, there was a gradual improvement as the operating ROA decreased to -13.50% by December 31, 2021, and further to -8.43% by December 31, 2022. This suggests that the company's operational efficiency in utilizing its assets to generate income was gradually enhancing, albeit still operating at a loss.
However, the turning point came in December 31, 2023, when the operating ROA improved to -5.95%, indicating that the company was beginning to generate a positive return from its operational activities on its assets. By December 31, 2024, Inspire Medical Systems Inc's operating ROA further improved to 4.46%, signifying a significant turnaround where the company was effectively utilizing its assets to generate operating income.
The trend indicates a progressive enhancement in the company's operational efficiency and performance in utilizing its assets to generate earnings over the years, ultimately resulting in a positive operating return on assets by the end of the period.
Peer comparison
Dec 31, 2024