Inari Medical Inc (NARI)

Working capital turnover

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Revenue (ttm)	US$ in thousands	493,364	469,933	439,579	413,142	382,874	346,212	335,938	306,140	276,785	257,782	209,685	171,036
Total current assets	US$ in thousands	235,563	469,061	444,617	425,606	422,905	410,571	411,338	413,339	245,198	228,150	228,172	221,277	205,673	199,461	219,764
Total current liabilities	US$ in thousands	76,339	66,066	58,238	48,340	56,174	42,343	40,984	35,580	42,513	29,510	31,582	20,615	13,838	14,327	10,902
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

December 31, 2023 calculation

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

Working capital turnover is a financial ratio that measures a company's ability to efficiently use its working capital to generate sales revenue. In the case of Inari Medical Inc, the working capital turnover ratio has been increasing steadily over the past quarters.

In Q4 2023, the working capital turnover ratio improved to 3.10, indicating that the company generated $3.10 in sales for every dollar of working capital. This suggests that Inari Medical Inc effectively managed its working capital to support sales growth in the most recent quarter.

Compared to previous quarters, the company's working capital turnover ratio has shown a positive trend, with improvements from Q1 2022 to Q4 2023. This indicates that Inari Medical Inc has been utilizing its working capital more efficiently over time to drive revenue growth.

Overall, the increasing trend in the working capital turnover ratio for Inari Medical Inc reflects the company's ability to optimize its working capital management, indicating a positive financial performance in terms of capital utilization efficiency.