Inspire Medical Systems Inc (INSP)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	33,048	6,011	-15,734	-21,153	-32,766	-41,073	-43,611	-44,881	-50,422	-43,922	-42,520	-42,042	-47,135	-47,173	-57,174	-57,203	-58,799	-56,661	-41,222	-33,243
Total stockholders’ equity	US$ in thousands	696,562	638,071	589,024	572,514	544,180	529,359	504,648	496,008	470,204	226,984	225,055	229,048	220,300	219,914	223,131	229,747	228,823	233,594	127,403	139,835
ROE		4.74%	0.94%	-2.67%	-3.69%	-6.02%	-7.76%	-8.64%	-9.05%	-10.72%	-19.35%	-18.89%	-18.36%	-21.40%	-21.45%	-25.62%	-24.90%	-25.70%	-24.26%	-32.36%	-23.77%

September 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $33,048K ÷ $696,562K
= 4.74%

Inspire Medical Systems Inc's return on equity (ROE) has shown a fluctuating trend over the past few years, ranging from negative percentages to low positive percentages. The ROE has generally been on a downward trajectory, indicating challenges in generating profits relative to shareholders' equity.

The company experienced a significant decline in ROE from the end of 2019 to the beginning of 2020, reaching a low point of -32.36%. Since then, there have been fluctuations, with occasional improvements but overall remaining negative. The latest ROE figure of 4.74% in September 2024 is a slight improvement compared to the preceding quarters but still relatively low.

Inspire Medical Systems Inc's ROE performance suggests that the company may be struggling to effectively utilize shareholders' equity to generate profits. Management may need to focus on improving operational efficiency, increasing profitability, and potentially restructuring strategic initiatives to enhance ROE in the future.