Inari Medical Inc (NARI)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-1,636	-29,267	9,840	13,789
Total stockholders’ equity	US$ in thousands	464,910	417,002	239,209	200,254
ROE		-0.35%	-7.02%	4.11%	6.89%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-1,636K ÷ $464,910K
= -0.35%

In analyzing Inari Medical Inc's return on equity (ROE) over the past four years, we observe a fluctuating trend. The ROE for the company was 6.89% in 2020, showing a positive return on shareholders' equity. However, this metric declined to 4.11% in 2021 before turning negative in the subsequent years, with ROE values of -7.02% in 2022 and -0.35% in 2023.

The negative ROE values in 2022 and 2023 indicate that the company's net income was not sufficient to generate a positive return for shareholders relative to the equity invested. Further analysis would be required to understand the factors contributing to this trend, such as changes in profit margins, asset efficiency, or leverage.

Overall, the declining trend in ROE raises concerns about the company's ability to effectively generate returns on shareholders' equity. Investors and stakeholders may need to closely monitor the company's financial performance and management strategies to address these challenges and improve profitability in the future.