Inari Medical Inc (NARI)

Working capital 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
Total current assets	US$ in thousands	235,563	422,905	245,198	205,673
Total current liabilities	US$ in thousands	76,339	56,174	42,513	13,838
Working capital turnover		3.10	1.05	1.37	0.73

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $493,364K ÷ ($235,563K – $76,339K)
= 3.10

Working capital turnover measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital. In the case of Inari Medical Inc:

- In 2023, the working capital turnover ratio significantly increased to 3.10, reflecting a notable improvement in the company's ability to generate revenue using its working capital compared to the previous year.
- The ratio was relatively low in 2022 at 1.05, suggesting lower efficiency in utilizing working capital to generate revenue compared to the subsequent years.
- In 2021, there was a moderate improvement in the working capital turnover ratio to 1.37, indicating better efficiency compared to 2022 but still lower than in 2023.
- The lowest ratio was observed in 2020 at 0.73, indicating the least efficiency in utilizing working capital to generate revenue among the years presented.

Overall, the trend in working capital turnover for Inari Medical Inc shows a significant improvement in efficiency from 2020 to 2023, with the company achieving the highest efficiency in utilizing working capital to generate revenue in 2023.