Inari Medical Inc (NARI)
Payables 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 |
| Payables | US$ in thousands | 10,577 | 7,659 | 6,541 | 3,047 |
| Payables turnover | 39.84 | 5.81 | 3.78 | 4.30 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $421,431K ÷ $10,577K
= 39.84
The payables turnover for Inari Medical Inc has exhibited fluctuations over the past four years. In 2023, the payables turnover ratio decreased to 5.58 from 5.81 in 2022, indicating that the company took longer to pay its suppliers compared to the previous year. Despite this slight decline, the payables turnover ratio in 2023 remains relatively high, suggesting efficient management of accounts payable.
When compared to 2021 and 2020, where the payables turnover ratios were 3.78 and 4.30 respectively, the company has shown improvement in managing its payables more effectively in recent years. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently within a shorter period, which can be beneficial in maintaining good relationships with vendors.
Overall, Inari Medical Inc's payables turnover reflects a balance between managing payables efficiently and optimizing cash flow. It is important for the company to continue monitoring this ratio to ensure timely payments to suppliers while maintaining healthy liquidity levels.
Peer comparison
Dec 31, 2023