Inspire Medical Systems Inc (INSP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	572,514	496,008	229,048	229,747	139,835
ROE		-3.69%	-9.05%	-18.36%	-24.90%	-23.77%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-21,153K ÷ $572,514K
= -3.69%

Inspire Medical Systems Inc's return on equity (ROE) has shown a declining trend over the past five years, with negative values recorded in each year. The ROE was -3.69% in 2023, an improvement from the -9.05% in 2022 but still indicative of the company's struggles to generate profits from shareholders' equity. The pattern of negative ROE indicates that the company's net income is not sufficient to cover the returns expected by its equity investors.

The consistent negative ROE values suggest that Inspire Medical Systems Inc is facing challenges in efficiently utilizing shareholder investments to generate profits. This could be due to various factors, such as high operating expenses, low profitability, or inefficient management of assets. Investors may view the declining trend in ROE as a cause for concern regarding the company's financial performance and long-term sustainability.

Overall, the negative ROE values highlight the need for Inspire Medical Systems Inc to evaluate its financial strategies, operational efficiency, and profitability to improve shareholder returns and enhance overall financial health.