Inari Medical Inc (NARI)

Current ratio

		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
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
Current ratio		3.09	7.10	7.63	8.80	7.53	9.70	10.04	11.62	5.77	7.73	7.22	10.73	14.86	13.92	20.16

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $235,563K ÷ $76,339K
= 3.09

The current ratio of Inari Medical Inc has shown a declining trend over the past few quarters, indicating a decrease in the company's ability to meet its short-term obligations with its current assets. The ratio was relatively high in Q1 2022 at 11.62 but has been consistently decreasing since then. The current ratio decreased to 3.09 in Q4 2023, which may raise concerns about the company's liquidity position.

While a high current ratio is generally considered favorable as it suggests a strong ability to cover short-term liabilities, a sharp decline in this ratio may indicate potential issues with managing current assets and liabilities efficiently. Investors and stakeholders should closely monitor the trend of the current ratio to assess the company's liquidity position and financial health.