Inari Medical Inc (NARI)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.43 | 6.39 | 6.90 | 7.97 | 6.85 | 8.82 | 9.26 | 10.78 | 5.14 | 6.83 | 6.57 | 9.97 | 13.89 | 13.18 | 19.28 |
| Cash ratio | 1.51 | 5.32 | 5.80 | 6.79 | 5.81 | 7.54 | 8.06 | 9.52 | 4.14 | 5.51 | 5.57 | 8.45 | 11.87 | 11.73 | 17.87 |
Inari Medical Inc's liquidity ratios have shown consistent robust performance over the quarters, indicating strong liquidity and ability to meet short-term obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has remained comfortably above 3 in each quarter, reaching its peak at 11.62 in Q1 2022. This suggests that the company has more than enough current assets to cover its current liabilities.
The quick ratio, which excludes inventory from current assets to provide a more stringent measure of liquidity, has also demonstrated strong performance, consistently above 2 and peaking at 10.95 in Q1 2022. This indicates that the company can fulfill its short-term obligations without relying on selling inventory.
The cash ratio, which is the most stringent liquidity measure as it only considers cash and cash equivalents, has also been impressive, consistently above 1.5 in each quarter. Inari Medical Inc has shown a strong ability to cover its current liabilities with its available cash resources.
Overall, based on the liquidity ratios analysis, Inari Medical Inc appears to be well-positioned to meet its short-term obligations and financial commitments, indicating a healthy financial position in terms of liquidity.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 79.87 | 82.94 | 84.02 | 79.30 | 82.84 | 85.11 | 81.69 | 79.81 | 80.47 | 83.17 | 73.71 | 90.54 |
The cash conversion cycle of Inari Medical Inc has shown fluctuations over the past eight reported quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
From Q1 2022 to Q4 2023, Inari Medical Inc's cash conversion cycle has ranged from a low of 251.58 days to a high of 276.25 days. The company's cycle peaked in Q2 2023 before seeing a slight improvement in Q4 2023.
A longer cash conversion cycle generally indicates that the company is taking longer to sell its products and collect cash from customers, which may result in increased working capital needs. On the other hand, a shorter cycle implies better efficiency in managing inventory, accounts receivable, and accounts payable.
Inari Medical Inc should aim to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow and working capital management. Fluctuations in the cycle could be indicators of changes in the company's operational efficiency and financial health.