Inari Medical Inc (NARI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 493,364 | 383,471 | 276,984 | 139,670 |
| Receivables | US$ in thousands | 70,119 | 58,611 | 42,351 | 28,008 |
| Receivables turnover | 7.04 | 6.54 | 6.54 | 4.99 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $493,364K ÷ $70,119K
= 7.04
The receivables turnover ratio for Inari Medical Inc has shown a consistent increase over the years, reflecting the company's ability to efficiently collect on its accounts receivable. In 2023, the receivables turnover ratio reached 7.04, indicating that the company collected its outstanding receivables approximately 7.04 times during the year. This improvement from 6.54 in the previous two years and 4.99 in 2020 demonstrates effective credit management and timely collection practices, which may lead to improved cash flow and liquidity for the company. Investors and creditors commonly use this ratio as a measure of a company's efficiency in collecting payments from customers, and Inari Medical's increasing ratio suggests that its accounts receivable management has been strong in recent years.
Peer comparison
Dec 31, 2023