Inspire Medical Systems Inc (INSP)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	15,799	24,746	24,522
Total stockholders’ equity	US$ in thousands	572,514	496,008	229,048	229,747	139,835
Debt-to-capital ratio		0.00	0.00	0.06	0.10	0.15

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $572,514K)
= 0.00

The debt-to-capital ratio of Inspire Medical Systems Inc has been decreasing over the past five years, indicating a decreasing reliance on debt to finance the company's operations and growth. In 2019, the ratio was 0.15, indicating that 15% of the company's capital was funded by debt. This ratio decreased to 0.10 in 2020, 0.06 in 2021, and further to 0.00 in 2022 and 2023, suggesting that the company has significantly reduced its debt levels or increased its equity capital during these years. The decreasing trend in the debt-to-capital ratio can be viewed positively as it implies a stronger financial position and lower financial risk for the company.