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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Mar. 2026, Inspire Medical Systems has a Sloan Ratio of -1.88%, indicating the company is in the safe zone and there is no funny business with accruals.
Inspire Medical Systems (NYSE:INSP) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Inspire Medical Systems has a Sloan Ratio of -1.88%, indicating the company is in the safe zone and there is no funny business with accruals.
Inspire Medical Systems Sloan Ratio % Related Terms
Inspire Medical Systems Sloan Ratio % Historical Data
* 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.
INSP vs AHCO, IART, CNMD: Sloan Ratio % Comparison
For the Medical Devices subindustry, Inspire Medical Systems's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Inspire Medical Systems Sloan Ratio % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Inspire Medical Systems's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Inspire Medical Systems's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Inspire Medical Systems's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Inspire Medical Systems's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -3.592 (Jun. 2025 ) + 9.932 (Sep. 2025 ) + 136.09 (Dec. 2025 ) + -11.294 (Mar. 2026 ) = $131.1 Mil.
Inspire Medical Systems's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 2.684 (Jun. 2025 ) + 68.526 (Sep. 2025 ) + 52.469 (Dec. 2025 ) + 12.849 (Mar. 2026 ) = $136.5 Mil.
Inspire Medical Systems's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 46.562 (Jun. 2025 ) + -11.645 (Sep. 2025 ) + -11.918 (Dec. 2025 ) + -11.249 (Mar. 2026 ) = $11.8 Mil.
* 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.
Inspire Medical Systems (INSP) has a Sloan Ratio % of -1.88% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Inspire Medical Systems and its competitors.
Is Inspire Medical Systems' Sloan Ratio % too high?
Inspire Medical Systems' current Sloan Ratio % is -1.88%. Overall, Inspire Medical Systems has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Inspire Medical Systems' Sloan Ratio % compare to AHCO and IART?
Inspire Medical Systems' Sloan Ratio % of -1.88% can be compared against companies in the Medical Devices & Instruments industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Medical Devices & Instruments company?
A good Sloan Ratio % depends on the Medical Devices & Instruments industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Inspire Medical Systems and its competitors. Inspire Medical Systems's current Sloan Ratio % is -1.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inspire Medical Systems stock overvalued right now?
Based on GuruFocus' analysis, Inspire Medical Systems (INSP) is currently considered Possible Value Trap. The stock's GF Value™ is $215.17, compared to a current price of $52.51 — trading 75.6% below its estimated fair value. The current Sloan Ratio % is -1.88%. Inspire Medical Systems' overall GF Score™ is 54/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Inspire Medical Systems (INSP), the current Sloan Ratio % is -1.88% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Inspire Medical Systems (INSP) Overvalued in 2026?
Based on GuruFocus' analysis, Inspire Medical Systems stock appears to be undervalued.
The current stock price of $52.51 is trading 75.6% below its estimated GF Value™ of $215.17.
GuruFocus considers Inspire Medical Systems to be Possible Value Trap.
Key valuation signals for INSP:
Sloan Ratio %: -1.88%
GF Value™: $215.17 vs. price of $52.51 (75.6% below fair value)
No single metric tells the full story. See the INSP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 All other countries wherein, it generates a majority of its revenue from the United States. Its segment revenues are derived from the sales of its product, the Inspire system, to hospitals and ambulatory surgery centers in the U.S. and in selected countries in Europe and the Asia Pacific region.
54GF Score
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