Inari Medical Inc (NARI)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	421,431	44,506	24,757	13,106
Inventory	US$ in thousands	42,900	32,581	21,053	10,597
Inventory turnover		9.82	1.37	1.18	1.24

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $421,431K ÷ $42,900K
= 9.82

In analyzing Inari Medical Inc's inventory turnover, we observe a fluctuating trend over the past four years. The inventory turnover ratio measures how efficiently a company manages its inventory by calculating how many times it sells and replaces its inventory during a specific period.

In 2020, the inventory turnover ratio was 1.24, indicating that the company turned over its inventory 1.24 times during that year. Subsequently, in 2021, the ratio decreased to 1.18, suggesting a slight decrease in inventory turnover efficiency. However, in 2022, the ratio improved to 1.37, showing a recovery in managing inventory turnover.

The most recent data for 2023 indicates an inventory turnover ratio of 1.38, suggesting a further improvement in inventory management efficiency compared to the previous year. Overall, while there have been fluctuations in the inventory turnover ratio, the recent trend indicates an increasing efficiency in Inari Medical Inc's inventory management.