Inspire Medical Systems Inc (INSP)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019
Operating income (ttm)	US$ in thousands	13,496	-14,293	-35,991	-40,271	-49,903	-53,626	-51,034	-47,592	-49,078	-41,680	-40,217	-39,850	-45,091	-45,187	-55,457	-56,208	-58,439	-57,198	-42,560	-34,897
Total assets	US$ in thousands	796,194	728,389	685,842	676,811	639,494	618,246	571,847	564,876	527,523	292,002	289,720	295,084	278,894	272,208	273,413	281,189	271,784	271,308	165,736	181,253
Operating ROA		1.70%	-1.96%	-5.25%	-5.95%	-7.80%	-8.67%	-8.92%	-8.43%	-9.30%	-14.27%	-13.88%	-13.50%	-16.17%	-16.60%	-20.28%	-19.99%	-21.50%	-21.08%	-25.68%	-19.25%

September 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $13,496K ÷ $796,194K
= 1.70%

The operating return on assets (operating ROA) for Inspire Medical Systems Inc has shown fluctuations over the past few quarters. From September 2020 to September 2024, the operating ROA ranged from a low of -25.68% in March 2020 to a high of 1.70% in September 2024.

The trend indicates that there have been periods of negative operating ROA, indicating that the company's operating income generated from its assets was insufficient to cover the asset base. This could be attributed to inefficient asset utilization or operational inefficiencies during those periods.

However, the recent improvement in operating ROA from negative figures to a positive 1.70% in September 2024 suggests potential operational improvements or better asset management by the company. It would be crucial for the company to sustain this positive trend to enhance its profitability and effectiveness in utilizing its assets for generating operating income in the future.