Inspire Medical Systems Inc (INSP)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	-31,084
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	24,522
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
Return on total capital		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%	-18.91%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $13,496K ÷ ($—K + $696,562K)
= 1.94%

Inspire Medical Systems Inc's return on total capital has fluctuated over the past several quarters. From September 2020 to September 2024, the return on total capital ranged from a low of -25.71% in March 2020 to a high of 1.94% in September 2024. The ratio indicates how efficiently the company is generating profits from its total capital employed.

The negative values for most quarters suggest that the company's profitability in relation to its total capital has been relatively low during this period. A negative return on total capital could indicate that the company is not effectively utilizing its capital to generate returns or that it is experiencing losses.

It is important for Inspire Medical Systems Inc to analyze the factors contributing to these fluctuations and take appropriate actions to improve its return on total capital. By enhancing operational efficiency, managing costs, and increasing revenue generation, the company may be able to enhance its profitability and overall financial performance in the future.