Inspire Medical Systems Inc (INSP)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	37,048	8,551	-14,047	-19,966	-31,913	-40,314	-42,910	-44,280	-49,962	-43,708	-42,422	-42,021	-47,071	-47,022	-57,049	-57,101	-58,672	-56,621	-41,182	-33,203
Revenue (ttm)	US$ in thousands	755,594	705,705	660,912	624,799	570,191	525,421	465,221	406,179	346,139	298,755	260,292	231,266	199,415	173,576	132,804	113,797	94,694	80,247	86,622	82,050
Pretax margin		4.90%	1.21%	-2.13%	-3.20%	-5.60%	-7.67%	-9.22%	-10.90%	-14.43%	-14.63%	-16.30%	-18.17%	-23.60%	-27.09%	-42.96%	-50.18%	-61.96%	-70.56%	-47.54%	-40.47%

September 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $37,048K ÷ $755,594K
= 4.90%

The pretax margin of Inspire Medical Systems Inc has shown a fluctuating trend over the past few quarters, indicating varying levels of profitability before taxes. The company's pretax margin improved from negative figures in 2020 and early 2021 to positive figures in 2023 and 2024, suggesting better cost management and operational efficiency.

The September 2024 pretax margin stands at 4.90%, reflecting a strong improvement compared to the previous quarters. This indicates that the company is generating more profits relative to its total revenue before considering taxes and other expenses.

It is essential to monitor the pretax margin closely in future quarters to assess the company's ability to sustain and potentially improve its profitability levels. A consistently positive pretax margin would indicate healthy financial performance, while a declining or negative trend could raise concerns about the company's operational efficiency and cost control measures.