Inari Medical Inc (NARI)

Quick 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
Cash	US$ in thousands	38,597	89,182	57,837	56,562	60,222	83,528	79,724	186,556	92,752	81,158	91,322	102,903	114,229	167,988	194,836
Short-term investments	US$ in thousands	76,855	262,113	279,696	271,884	266,179	235,705	250,772	152,156	83,348	81,436	84,744	71,246	49,981	—	—
Receivables	US$ in thousands	70,119	70,919	64,374	56,595	58,611	54,059	49,171	44,950	42,351	38,916	31,497	31,304	28,008	20,837	15,392
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($38,597K + $76,855K + $70,119K) ÷ $76,339K
= 2.43

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Inari Medical Inc's quick ratio has shown fluctuations over the quarters, ranging from 2.52 to 10.95.

The quick ratio values for Q1 2022 to Q3 2022 (ranging from 9.00 to 10.95) indicate that the company had a strong ability to cover its short-term liabilities with its quick assets during that period. This suggests a high level of financial stability and liquidity.

However, in Q4 2022 and subsequent quarters, the quick ratio decreased significantly, ranging from 2.52 to 8.05. A quick ratio below 1 indicates potential liquidity issues, but in this case, the quick ratios are all above 1, which means the company still has enough quick assets to cover its short-term liabilities.

The fluctuations in the quick ratio could be due to changes in the components of the ratio such as cash, marketable securities, and accounts receivable. Further analysis of the individual components and the company's overall financial health would be necessary to fully understand the reasons behind these fluctuations.