Inspire Medical Systems Inc (INSP)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	36,083	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
Total assets	US$ in thousands	808,383	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
Operating ROA		4.46%	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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $36,083K ÷ $808,383K
= 4.46%

The operating return on assets (operating ROA) of Inspire Medical Systems Inc has shown a significant improvement over the reporting periods from March 31, 2020, to December 31, 2024.

Initially, the company had negative operating ROA figures, indicating that it was not efficiently generating profits from its assets. However, there was a noticeable turnaround starting from September 30, 2024, when the operating ROA turned positive at 1.70%. This positive trend continued with a further increase in December 31, 2024, reaching 4.46%, reflecting improved efficiency in utilizing assets to generate operating profits.

Overall, the company has made strides in enhancing its operational efficiency and profitability, as evidenced by the gradual improvement in the operating ROA figures. This positive trend suggests that Inspire Medical Systems Inc has been able to effectively utilize its assets to generate operating income, which bodes well for its financial performance and sustainability in the future.