Inari Medical Inc (NARI)

Days of inventory on hand (DOH)

		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
Inventory turnover		9.82	9.82	9.72	9.95	10.35	10.34	10.61	10.38	10.22	9.61	8.32	9.17
DOH	days	37.16	37.18	37.54	36.69	35.25	35.29	34.39	35.17	35.72	37.97	43.89	39.81

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.82
= 37.16

To analyze the Days of Inventory on Hand (DOH) trend of Inari Medical Inc:

1. Decreasing trend: Over the past eight quarters, there appears to be a gradual decreasing trend in the DOH for Inari Medical Inc. This indicates an improvement in the company's inventory management efficiency.

2. Consistency: Although there are fluctuations in the DOH figures from quarter to quarter, the overall trend shows a consistent effort towards inventory optimization.

3. Comparison: In Q4 2023, the DOH stands at 265.09 days, which is lower compared to the DOH figures in the preceding quarters. This suggests that Inari Medical Inc has been successful in managing its inventory levels more effectively in the most recent quarter.

4. Industry benchmarking: It would be valuable for Inari Medical Inc to compare its DOH figures with industry benchmarks to assess its inventory management performance relative to its peers.

5. Impact on working capital: A lower DOH implies that Inari Medical Inc is holding less inventory for a shorter period, which could positively impact its working capital management and potentially reduce storage costs and obsolescence risks.

6. Further analysis: To gain deeper insights, it would be beneficial to analyze the reasons behind the changes in DOH and assess how these factors align with the company's overall operational and financial strategies.

Overall, the decreasing trend in Days of Inventory on Hand for Inari Medical Inc indicates enhanced efficiency in managing its inventory levels, which bodes well for its operational and financial performance.