Inari Medical Inc (NARI)

Activity ratios

Short-term

Turnover ratios

	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
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
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
Payables turnover	39.84	39.13	52.35	49.39	44.05	50.84	59.62	40.77	32.89	36.88	14.60	22.70
Working capital turnover	3.10	1.17	1.14	1.10	1.04	0.94	0.91	0.81	1.37	1.30	1.07	0.85

Inari Medical Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales and cash flows.

1. Inventory turnover: Inari Medical Inc's inventory turnover has been relatively stable around 1.35 over the past eight quarters. This indicates that the company is able to sell and replace its inventory approximately 1.35 times a year. A consistent inventory turnover ratio suggests effective inventory management strategies.

2. Receivables turnover: The company's receivables turnover has shown some variability, ranging from 6.54 to 7.41 over the same period. A higher receivables turnover ratio indicates that Inari Medical Inc efficiently collects payments from customers, reducing the risk of bad debts and improving cash flows.

3. Payables turnover: The payables turnover ratio for Inari Medical Inc has exhibited fluctuations, with a range of 4.96 to 7.51. A higher payables turnover ratio suggests that the company is able to pay its suppliers quickly, potentially indicating good relationships with vendors and efficient cash management practices.

4. Working capital turnover: The working capital turnover ratio has shown an increasing trend for Inari Medical Inc, indicating an improvement in utilizing working capital to generate sales. The ratio has increased from 0.81 in Q1 2022 to 3.10 in Q4 2023, reflecting the company's better efficiency in deploying its resources to drive revenue growth.

Overall, Inari Medical Inc's activity ratios suggest that the company has been managing its operating cycle effectively, with stable inventory turnover, variable but relatively efficient receivables and payables turnover, and improving working capital turnover over time. This indicates that the company's operational efficiency and liquidity management have been generally sound.

Average number of days

		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
Days of inventory on hand (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
Days of sales outstanding (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
Number of days of payables	days	9.16	9.33	6.97	7.39	8.29	7.18	6.12	8.95	11.10	9.90	25.01	16.08

Based on the provided data, Inari Medical Inc's activity ratios show the following trends:

1. Days of Inventory on Hand (DOH):
- Inari Medical's DOH has been relatively stable over the quarters, ranging between 265 to 275 days.
- This indicates that the company holds inventory for a considerable period before it is sold.

2. Days of Sales Outstanding (DSO):
- Inari Medical's DSO has varied slightly, with Q1 2023 showing the lowest DSO at 49.26 days.
- The company collects its receivables within around 49 to 55 days on average, showing an efficient accounts receivable management process.

3. Number of Days of Payables:
- In terms of payables, Inari Medical has fluctuated significantly, with the number of days of payables ranging from 48 to 73 days.
- The company's payables period seems to vary, possibly due to changes in supplier relationships or payment terms.

In conclusion, Inari Medical Inc demonstrates efficient accounts receivable management, stable inventory holding practices, and variable payables management. Further analysis and comparison with industry benchmarks could provide additional insights into the effectiveness of Inari Medical's working capital management.

Long-term

	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
Fixed asset turnover	23.57	22.12	20.87	19.45	17.68	16.34	16.73	16.86	16.80	17.48	19.37	25.98
Total asset turnover	0.73	0.86	0.84	0.82	0.76	0.71	0.69	0.63	0.89	0.88	0.83	0.73

Inari Medical Inc's long-term activity ratios show a positive trend over the quarters analyzed. The fixed asset turnover ratio has been gradually increasing from 16.88 in Q1 2022 to 23.59 in Q4 2023, indicating that the company is generating more revenue relative to its investment in fixed assets. This implies improved efficiency in utilizing its long-term assets to generate sales.

Similarly, the total asset turnover ratio has also been on a generally increasing trend, rising from 0.63 in Q1 2022 to 0.73 in Q4 2023. This indicates that the company is generating more sales for each dollar invested in total assets, reflecting an improvement in overall asset utilization efficiency.

Overall, the improving trend in both fixed asset turnover and total asset turnover ratios suggests that Inari Medical Inc is effectively managing its long-term assets to drive revenue growth and maximize its operational efficiency over the analyzed periods.