Inspire Medical Systems Inc (INSP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	689,695	572,514	496,008	229,048	229,747
ROE		7.76%	-3.69%	-9.05%	-18.36%	-24.90%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $53,509K ÷ $689,695K
= 7.76%

Inspire Medical Systems Inc's return on equity (ROE) has shown a significant improvement over the years based on the provided data. The company had negative ROE figures in the past, with -24.90% as of December 31, 2020, which indicates the company was not utilizing its equity efficiently to generate profits for the shareholders.

However, there has been a notable turnaround in recent years, with the ROE improving to -18.36% as of December 31, 2021, then to -9.05% as of December 31, 2022, and further to -3.69% as of December 31, 2023. This progression suggests that the company has been making more effective use of its equity to generate returns for its shareholders.

Finally, as of December 31, 2024, Inspire Medical Systems Inc achieved a positive ROE of 7.76%. This positive figure indicates that the company is now efficiently utilizing its equity to generate profits, providing a favorable return for its shareholders. The trend of improving ROE over the years reflects positively on the company's financial performance and its ability to create value for its investors.