Inspire Medical Systems Inc (INSP)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	676,811	564,876	295,084	281,189	181,253
Total stockholders’ equity	US$ in thousands	572,514	496,008	229,048	229,747	139,835
Financial leverage ratio		1.18	1.14	1.29	1.22	1.30

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $676,811K ÷ $572,514K
= 1.18

The financial leverage ratio of Inspire Medical Systems Inc has fluctuated over the past five years, ranging from 1.14 to 1.30. The ratio indicates the extent to which the company relies on debt to finance its operations and investments. A higher financial leverage ratio suggests a higher level of debt relative to equity, which can amplify returns but also increase financial risk.

In 2021, the financial leverage ratio was at its highest at 1.29, indicating a relatively higher reliance on debt to fund the company's activities. Subsequently, the ratio decreased to 1.14 in 2022 before increasing again to 1.18 in 2023. These fluctuations demonstrate changes in the company's capital structure and funding sources over the years.

Overall, the financial leverage ratios for Inspire Medical Systems Inc over the past five years suggest a moderate level of leverage, with the company balancing the use of debt and equity financing in its operations. It is essential for stakeholders to monitor these ratios to assess the company's financial risk and stability.