Inari Medical Inc (NARI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Operating income | US$ in thousands | -14,032 | -28,099 | 10,844 | 18,419 |
| Total assets | US$ in thousands | 674,235 | 504,152 | 311,542 | 214,092 |
| Operating ROA | -2.08% | -5.57% | 3.48% | 8.60% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-14,032K ÷ $674,235K
= -2.08%
Operating ROA measures a company's operating efficiency by assessing its ability to generate profit from its assets. In the case of Inari Medical Inc, the operating ROA has shown a downward trend over the past four years. In 2020, the company had a robust operating ROA of 8.60%, indicating efficient utilization of assets to generate operating profit. However, the metric declined to 3.48% in 2021 and further to -5.57% in 2022, reflecting a decrease in profitability relative to the assets employed. This downward trend continued in 2023, with the operating ROA dropping to -2.08%.
The negative operating ROA figures in the recent years suggest that the company may be experiencing challenges in generating operating income from its assets, potentially indicating inefficiencies in operations or increased costs relative to revenue. Further analysis of the company's operations, cost structure, and revenue generation may be necessary to understand the underlying factors contributing to the declining trend in operating ROA for Inari Medical Inc.
Peer comparison
Dec 31, 2023