Inspire Medical Systems Inc (INSP)

Interest coverage

		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
Interest expense (ttm)	US$ in thousands	0	0	0	0	0	656	1,150	1,677	2,215	2,096	2,132	2,128	2,123	2,119	2,115	2,117	2,114	2,110	2,107	2,119
Interest coverage		—	—	—	—	—	-65.94	-39.44	-27.55	-21.53	-19.82	-18.87	-18.72	-21.17	-21.19	-25.97	-25.97	-26.75	-25.83	-18.55	-14.67

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $13,496K ÷ $0K
= —

The interest coverage ratio of Inspire Medical Systems Inc has shown a fluctuating trend over the past few quarters. From December 2020 to March 2022, the interest coverage ratio was consistently negative, indicating that the company's operating income was not sufficient to cover its interest expenses during that period.

However, starting from June 2022, there was a significant improvement in the interest coverage ratio, turning positive. This indicates that the company's operating income became more sufficient to cover its interest expenses. The interest coverage ratio further improved in the subsequent quarters, suggesting a positive trend in the company's ability to meet its interest obligations.

Overall, the improving trend in the interest coverage ratio of Inspire Medical Systems Inc from mid-2022 onwards is a positive signal of the company's financial health and ability to manage its debt obligations effectively.