Inspire Medical Systems Inc (INSP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 36,083 | -19,906 | -42,591 | -39,842 | -54,971 |
| Long-term debt | US$ in thousands | — | — | — | 15,799 | 24,746 |
| Total stockholders’ equity | US$ in thousands | 689,695 | 572,514 | 496,008 | 229,048 | 229,747 |
| Return on total capital | 5.23% | -3.48% | -8.59% | -16.27% | -21.60% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $36,083K ÷ ($—K + $689,695K)
= 5.23%
The return on total capital for Inspire Medical Systems Inc has exhibited a declining trend over the past five years. Starting at a negative value of -21.60% on December 31, 2020, the return improved gradually, turning less negative each year up to December 31, 2024, where it reached a positive value of 5.23%.
The negative returns in the initial years indicate that the company was not generating sufficient profits relative to the total capital invested. However, the subsequent positive return in 2024 suggests that the company's profitability relative to its total capital has improved significantly.
It is essential for Inspire Medical Systems Inc to continue monitoring and enhancing its return on total capital to ensure sustainable growth and value creation for its stakeholders.
Peer comparison
Dec 31, 2024