Inari Medical Inc (NARI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.45 | 1.21 | 1.30 | 1.07 |
Inari Medical Inc has displayed consistent strength in terms of solvency ratios over the past four years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently at 0.00, indicating that the company has not relied on debt to finance its operations and growth.
The financial leverage ratio, on the other hand, has shown an increasing trend over the same period. This ratio stood at 1.45 in 2023, compared to 1.21 in 2022, 1.30 in 2021, and 1.07 in 2020. This indicates that the company has been gradually increasing its reliance on debt to fund its operations and investments.
While the financial leverage ratio is still at a moderate level, the upward trend suggests that Inari Medical Inc is taking on more debt relative to its equity, which could increase financial risk in the future. Monitoring this trend and ensuring that debt levels remain manageable will be important for the company to maintain its financial stability and solvency in the long term.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Interest coverage | 22.66 | -88.06 | 37.22 | 13.15 |
Interest coverage is a financial ratio that reflects a company's ability to pay interest expenses on its outstanding debt. Inari Medical Inc's interest coverage has shown an improving trend over the years, with the ratio increasing from 28.29 in 2020 to 76.91 in 2021. However, the interest coverage ratio for 2022 and 2023 is not available in the provided data.
A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations, implying a lower risk of default. It suggests that Inari Medical Inc has been able to generate sufficient operating income to cover its interest expenses comfortably.
It would be beneficial to monitor the interest coverage ratio for 2022 and 2023 to assess the company's continued ability to service its interest payments and manage its debt obligations effectively.