Inspire Medical Systems Inc (INSP)

Debt-to-equity 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-equity ratio		0.00	0.00	0.07	0.11	0.18

December 31, 2023 calculation

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

The debt-to-equity ratio of Inspire Medical Systems Inc has shown a decreasing trend over the past five years. The ratio was 0.18 in 2019, indicating higher leverage, and has gradually decreased to 0.00 in both 2022 and 2023, signifying a significant reduction in debt relative to equity. This decrease suggests that the company has been effectively managing its debt levels and potentially strengthening its financial position by relying more on equity financing. A debt-to-equity ratio of 0.00 in the most recent two years indicates that the company is not utilizing any debt to finance its operations, which may reduce financial risk and enhance stability. Overall, the improving trend in the debt-to-equity ratio reflects positively on Inspire Medical Systems' financial health and indicates a lower reliance on external borrowing for its capital structure.