Inari Medical Inc (NARI)

Days of sales outstanding (DSO)

		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
Receivables turnover		7.04	6.63	6.83	7.30	6.53	6.40	6.83	6.81	6.54	6.62	6.66	5.46
DSO	days	51.88	55.08	53.45	50.00	55.87	56.99	53.42	53.59	55.85	55.10	54.83	66.80

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.04
= 51.88

To analyze Inari Medical Inc's days of sales outstanding (DSO) over the past eight quarters, we observe a general trend of fluctuation within a relatively narrow range. The DSO ranged from a low of 49.26 days in Q1 2023 to a high of 55.79 days in Q4 2022. This indicates that the company typically collects its accounts receivable in approximately 50-55 days.

The DSO metric measures how efficiently a company is collecting its outstanding accounts receivable. A lower DSO value is generally favorable as it suggests that the company is able to convert its accounts receivable into cash more quickly.

In analyzing Inari Medical Inc's DSO trend, we can observe that there was a slight improvement in Q1 2023 compared to the previous quarters, signaling a potential improvement in the company's collection efficiency. However, it is important to continue monitoring the DSO metric in future periods to ensure that the trend persists and to identify any potential issues in account receivable management.

Overall, the DSO analysis suggests that Inari Medical Inc has been relatively consistent in collecting its accounts receivable in a timely manner over the past eight quarters, with a recent slight improvement in efficiency.