Inspire Medical Systems Inc (INSP)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-21,153	-44,881	-42,042	-57,203	-33,243
Total assets	US$ in thousands	676,811	564,876	295,084	281,189	181,253
ROA		-3.13%	-7.95%	-14.25%	-20.34%	-18.34%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-21,153K ÷ $676,811K
= -3.13%

Inspire Medical Systems Inc's return on assets (ROA) has exhibited a declining trend over the past five years, with negative ROA figures consistently reported from 2019 to 2023. The company's ROA was at its lowest in 2020, at -20.34%, indicating a significant decrease in profitability relative to its asset base. Although there was a slight improvement in ROA in 2023 compared to the preceding years, it remained negative at -3.13%.

This negative ROA trend suggests that the company has been less efficient in generating profits relative to its total assets during the period under review. Investors and stakeholders may be concerned about the company's ability to utilize its assets effectively to generate returns. Further analysis and investigation into the company's financial performance, asset management strategies, and overall profitability are recommended to understand the underlying factors contributing to the declining ROA and to identify potential areas for improvement.