Inspire Medical Systems Inc (INSP)
Solvency ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | 0.04 | 0.05 | 0.07 | 0.08 | 0.09 | 0.09 | 0.09 | 0.09 | 0.15 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | 0.05 | 0.06 | 0.08 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.16 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | 0.06 | 0.07 | 0.09 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.19 |
| Financial leverage ratio | 1.17 | 1.14 | 1.14 | 1.16 | 1.18 | 1.18 | 1.17 | 1.13 | 1.14 | 1.12 | 1.29 | 1.29 | 1.29 | 1.27 | 1.24 | 1.23 | 1.22 | 1.19 | 1.16 | 1.30 |
Inspire Medical Systems Inc's solvency ratios show a consistent improvement over the years, indicating a strong financial position.
1. Debt-to-assets ratio has decreased steadily from 0.15 in March 2020 to 0.00 by December 2024, indicating that the company's total debt relative to its total assets has significantly decreased.
2. Debt-to-capital ratio follows a similar trend, declining from 0.16 in March 2020 to 0.00 by December 2024, suggesting that the company has reduced its reliance on debt to finance its operations.
3. Debt-to-equity ratio mirrors the trend of decline, dropping from 0.19 in March 2020 to 0.00 by December 2024, indicating a significant reduction in debt relative to equity.
4. The financial leverage ratio has also improved consistently, decreasing from 1.30 in March 2020 to 1.17 by December 2024. This decrease reflects the company's ability to meet its financial obligations with a lower level of debt.
Overall, the declining trend in Inspire Medical Systems Inc's solvency ratios signifies a strengthening financial position and reduced financial risk over the years. These improvements suggest that the company has managed its debt levels effectively and enhanced its overall solvency.
Coverage ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1,640.14 | — | — | — | — | — | -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 |
The interest coverage ratio reflects Inspire Medical Systems Inc's ability to meet its interest obligations using its operating income. Based on the data provided, the trend in interest coverage ratios from March 31, 2020, to December 31, 2024, shows a significant deterioration, as the ratio consistently remained negative throughout the period, indicating that the company's operating income was insufficient to cover its interest expenses.
The negative interest coverage ratios suggest that Inspire Medical Systems Inc faced challenges in generating enough operating income to cover its interest payments. This situation raises concerns about the company's financial sustainability and its ability to service its debt obligations.
Moreover, the drastic decline in the interest coverage ratio over time, reaching extremely low levels in the June 30, 2023, reading of -65.94 and then showing a significant aberration in the December 31, 2024, figure of 1,640.14, raises questions regarding the reliability and consistency of financial performance during the period.
In conclusion, the consistently negative interest coverage ratios and the sudden spike in the ratio by the end of 2024 suggest that Inspire Medical Systems Inc experienced significant financial challenges and fluctuations in its ability to cover interest expenses, indicating a need for close monitoring and examination of the company's financial health and performance sustainability.