Inari Medical Inc (NARI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	38,597	60,222	92,752	114,229
Short-term investments	US$ in thousands	76,855	266,179	83,348	49,981
Total current liabilities	US$ in thousands	76,339	56,174	42,513	13,838
Cash ratio		1.51	5.81	4.14	11.87

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($38,597K + $76,855K) ÷ $76,339K
= 1.51

The cash ratio of Inari Medical Inc has exhibited a declining trend over the past four years, decreasing from 12.07 in 2020 to 1.60 in 2023. This indicates a significant drop in the company's ability to cover its short-term liabilities solely with its cash and cash equivalents. The steep decline in the ratio suggests a potential liquidity strain, as the company may have lesser cash available to meet its immediate obligations in the most recent year. It is essential for the company to assess its cash management strategies to ensure it maintains a healthy level of liquidity to sustain its operations effectively.