Inspire Medical Systems Inc (INSP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 53,509 | -21,153 | -44,881 | -42,042 | -57,203 |
| Total assets | US$ in thousands | 808,383 | 676,811 | 564,876 | 295,084 | 281,189 |
| ROA | 6.62% | -3.13% | -7.95% | -14.25% | -20.34% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $53,509K ÷ $808,383K
= 6.62%
Based on the provided data, the return on assets (ROA) for Inspire Medical Systems Inc has shown a significant improvement over the years. The ROA was negative in the initial years, indicating that the company was not utilizing its assets efficiently to generate profits. However, there has been a notable turnaround as the ROA gradually increased from -20.34% in December 2020 to 6.62% in December 2024.
This upward trend in ROA suggests that the company has become more effective in generating profits relative to its assets. A positive ROA indicates that the company is utilizing its assets efficiently to generate income, which is a positive sign for investors and stakeholders. It shows that the management is making better use of the company's resources to drive profitability and create value for shareholders.
Peer comparison
Dec 31, 2024