Inari Medical Inc (NARI)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	674,235	504,152	311,542	214,092
Total stockholders’ equity	US$ in thousands	464,910	417,002	239,209	200,254
Financial leverage ratio		1.45	1.21	1.30	1.07

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $674,235K ÷ $464,910K
= 1.45

Inari Medical Inc's financial leverage ratio has been fluctuating over the past four years. The ratio increased from 1.07 in 2020 to 1.30 in 2021, before declining to 1.21 in 2022, and then rising again to 1.45 in 2023. This indicates that the company's financial leverage has been increasing in recent years, suggesting a higher level of debt relative to equity in its capital structure. Investors and creditors may view this trend as increasing financial risk, as higher leverage ratios indicate a greater reliance on debt financing. Monitoring this ratio closely is essential for assessing the company's debt management and financial health.