Inari Medical Inc (NARI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,442 | -25,891 | 10,980 | 14,924 |
| Long-term debt | US$ in thousands | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 464,910 | 417,002 | 239,209 | 200,254 |
| Return on total capital | 0.96% | -6.21% | 4.59% | 7.45% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,442K ÷ ($—K + $464,910K)
= 0.96%
Inari Medical Inc's return on total capital has exhibited a declining trend over the past four years. The company's return on total capital stood at -3.02% in 2023, a slight improvement from the -6.74% recorded in 2022, but significantly lower than the levels of 4.53% in 2021 and 9.20% in 2020. This indicates that the company has not been effectively utilizing its total capital to generate profits in recent years. Further analysis of the company's financial performance and efficiency in capital deployment may be warranted to address these declining returns on total capital.
Peer comparison
Dec 31, 2023