Inspire Medical Systems Inc (INSP)

Return on total capital

		Dec 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	36,083	13,496	-9,022	-25,873	-25,879	-35,511	-43,256	-45,358	-46,201	-47,687	-41,552	-40,230	-39,833	-44,948	-44,903	-54,934	-54,984	-56,558	-54,511	-39,075
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	9,795	12,798	15,799	18,799	21,801	24,804	24,746	24,689	24,632	24,576
Total stockholders’ equity	US$ in thousands	689,695	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
Return on total capital		5.23%	1.94%	-1.41%	-4.39%	-4.52%	-6.53%	-8.17%	-8.99%	-9.31%	-10.14%	-17.55%	-16.91%	-16.27%	-18.80%	-18.58%	-22.16%	-21.61%	-22.31%	-21.11%	-25.71%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $36,083K ÷ ($—K + $689,695K)
= 5.23%

Inspire Medical Systems Inc's return on total capital has shown a downward trend over the given period from March 31, 2020, to December 31, 2024. The metric started at a negative level, deteriorating further until the third quarter of 2022. From that point on, there was a consistent improvement in the return on total capital, turning positive by the end of the fourth quarter of 2024. This indicates that the company's ability to generate profit from its total capital invested improved gradually over time, although it experienced challenges in the initial years of the period analyzed. Investors and stakeholders may view this improving trend positively as it suggests a recovery in the company's profitability and efficiency in utilizing its capital resources.