Inspire Medical Systems (Inspire Medical Systems) Operating Income : $-36.0 Mil (TTM As of Mar. 2024)

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What is Inspire Medical Systems Operating Income?

Inspire Medical Systems's Operating Income for the three months ended in Mar. 2024 was $-15.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-36.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Inspire Medical Systems's Operating Income for the three months ended in Mar. 2024 was $-15.2 Mil. Inspire Medical Systems's Revenue for the three months ended in Mar. 2024 was $164.0 Mil. Therefore, Inspire Medical Systems's Operating Margin % for the quarter that ended in Mar. 2024 was -9.28%.

Good Sign:

Inspire Medical Systems Inc operating margin is expanding. Margin expansion is usually a good sign.

Inspire Medical Systems's 5-Year average Growth Rate for Operating Margin % was 33.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Inspire Medical Systems's annualized ROC % for the quarter that ended in Mar. 2024 was -41.92%. Inspire Medical Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -48.48%.

Inspire Medical Systems Operating Income Historical Data

The historical data trend for Inspire Medical Systems's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Inspire Medical Systems Operating Income Chart

Inspire Medical Systems Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-34.90

-56.21

-39.85

-47.59

-40.27

Inspire Medical Systems Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															-19.50	-16.60	-13.47	9.30	-15.22

Inspire Medical Systems Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-36.0 Mil.

Inspire Medical Systems (NYSE:INSP) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Inspire Medical Systems's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-60.872 * ( 1 - -6.95% )	/	( (138.331	+	172.309)	/ 2 )
=	-65.102604	/	155.32
=	-41.92 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	676.811	-	78.105	-	( 460.375	-	max(0, 78.105	-	593.739	+	460.375	))
=	138.331

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	685.842	-	72.172	-	( 441.361	-	max(0, 72.172	-	572.214	+	441.361	))
=	172.309

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Inspire Medical Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-60.872	/	( ( (62.651 + max(55.259, 0))	+	(74.529 + max(58.681, 0)) )	/	2 )
=	-60.872	/	( ( 117.91	+	133.21 )	/	2 )
=	-60.872	/	125.56
=	-48.48 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(89.884	+	33.885	+	9.595)	-	(78.105	+	0	+	0)
=	55.259

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(72.333	+	48.974	+	9.546)	-	(72.172	+	0	+	0)
=	58.681

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Inspire Medical Systems's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	-15.218	/	164.01
	=	-9.28 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Inspire Medical Systems Operating Income Related Terms

Thank you for viewing the detailed overview of Inspire Medical Systems's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Inspire Medical Systems (Inspire Medical Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Inspire Medical Systems Inc (NYSE:INSP) » Definitions » Operating Income

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Traded in Other Exchanges

2DR:Germany 2DR:Germany

Address

5500 Wayzata Boulevard, Suite 1600, Golden Valley, MN, USA, 55416

Website

https://www.inspiresleep.com

Inspire Medical Systems Inc operates as a medical technology company. It focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA). It offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. The firm has operating footprints in the United States and Europe wherein, it generates a majority of its revenue from the United States.

Executives

Timothy P. Herbert	director, 10 percent owner, officer: CEO and President	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Jerry C Griffin	director	887L INDUSTRIAL ROAD, SAN CARLOS CA 94070
Carlton Weatherby	officer: Chief Strategy Officer	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Steven Jandrich	officer: Chief Comp Off & VP, Human Res	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Philip Ebeling	officer: Chief Operating Officer	INSPIRE MEDICAL SYSTEMS, INC., 5500 WAYZATA BLVD., SUITE 1600, GOLDEN VALLEY MN 55416
John Rondoni	officer: Chief Technology Officer	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Richard Buchholz	officer: Chief Financial Officer	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Randy Ban	officer: Senior VP. & Sales & Marketing	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Marilyn C Nelson	director	C/O EXXON MOBIL CORP, 5959 LAS COLINAS BLVD., IRVING TX 75039-2298
Cynthia Burks	director	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Charisse Y Sparks	director	C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Georgia Melenikiotou	director	C/O INSPIRE MEDICAL SYSTEMS, INC., 5500 WAYZATA BOULEVARD, SUITE 1600, GOLDEN VALLEY MN 55416
Bryan K Phillips	officer: See Remarks	9924 WEST 74TH STREET, EDEN PRAIRIE MN 55344
Shelley G. Broader	director	880 CARILLON PARKWAY, ST. PETERSBURG FL 33702
Casey M Tansey	director, 10 percent owner	2735 SAND HILL ROAD, MENLO PARK CA 94025