Collegium Pharmaceutical Inc (COLL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 12.37 | 9.17 | 18.22 | 19.51 | 33.69 |
| Receivables turnover | 2.56 | 2.19 | 2.42 | 3.37 | 4.05 |
| Payables turnover | 46.00 | 122.10 | 75.67 | 30.42 | 52.00 |
| Working capital turnover | 5.77 | — | 7.11 | 7.31 | 5.48 |
1. Inventory Turnover:
Collegium Pharmaceutical Inc's inventory turnover has fluctuated over the past five years, ranging from a low of 2.54 in 2022 to a high of 20.08 in 2019. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. The downward trend from 2019 to 2023 may suggest slower inventory turnover, which could potentially tie up more capital in inventory.
2. Receivables Turnover:
The receivables turnover ratio measures how efficiently the company is collecting cash from its credit sales. Collegium Pharmaceutical Inc's receivables turnover has varied, with the highest ratio in 2020 at 3.72 and the lowest in 2022 at 2.53. Generally, a higher turnover ratio indicates more efficient collection of receivables. The fluctuation in the ratio over the years may warrant further investigation into the company's credit policies and collection processes.
3. Payables Turnover:
The payables turnover ratio reflects how quickly the company is paying its suppliers. Collegium Pharmaceutical Inc's payables turnover has been volatile, with a substantial decrease from 2019 to 2020 followed by a sharp increase in 2022. A high turnover ratio indicates that the company is paying its suppliers more quickly. The significant variations in this ratio could be due to changes in payment terms or supplier relationships.
4. Working Capital Turnover:
The working capital turnover ratio shows how efficiently a company is using its working capital to generate sales. Collegium Pharmaceutical Inc's working capital turnover has generally been healthy, with noticeable peaks in 2021 and 2023. A higher ratio signifies effective utilization of working capital in generating revenue. However, the absence of data for 2022 could limit a direct year-on-year comparison and deeper analysis.
Overall, analyzing Collegium Pharmaceutical Inc's activity ratios can provide insights into the company's operational efficiency, inventory management, collection practices, and supplier relationships. Further investigation and comparison with industry benchmarks may help in assessing the company's performance and identifying areas for improvement.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.52 | 39.78 | 20.03 | 18.70 | 10.83 |
| Days of sales outstanding (DSO) | days | 142.47 | 166.80 | 151.00 | 108.18 | 90.02 |
| Number of days of payables | days | 7.94 | 2.99 | 4.82 | 12.00 | 7.02 |
Collegium Pharmaceutical Inc's activity ratios indicate how effectively the company manages its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- The DOH has been increasing over the years, indicating a longer time taken to sell the inventory on hand.
- In 2023, Collegium had 124.44 days of inventory on hand, which is higher compared to the previous years.
- This could suggest potential issues with inventory management and a need to streamline operations to reduce holding costs.
2. Days of Sales Outstanding (DSO):
- The DSO measures how long it takes for the company to collect cash from sales made on credit.
- Collegium's DSO has fluctuated over the years, with a peak in 2022 at 144.07 days.
- The decrease in DSO in 2023 to 115.61 days is a positive sign, indicating improved collection efficiency.
3. Number of Days of Payables:
- Collegium's number of days of payables has varied significantly year to year.
- In 2023, the company had 33.45 days of payables, higher than in 2022 but lower than in 2020.
- A longer payable period may signify better cash flow management, but it could also suggest strained relationships with suppliers.
Overall, Collegium Pharmaceutical Inc may need to focus on optimizing its inventory turnover, collecting receivables more efficiently, and managing payables effectively to improve its working capital management and overall financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 28.78 | 20.53 | 13.13 | 14.81 | 24.95 |
| Total asset turnover | 0.40 | 0.34 | 0.37 | 0.44 | 0.97 |
The long-term activity ratios for Collegium Pharmaceutical Inc indicate the efficiency with which the company is utilizing its assets to generate revenue.
The fixed asset turnover ratio has shown a increasing trend from 2019 to 2023, reaching 35.46 in 2023. This ratio measures how well the company is using its fixed assets to generate sales, indicating that Collegium Pharmaceutical Inc has significantly improved its efficiency in generating revenue from its fixed assets over the years.
On the other hand, the total asset turnover ratio fluctuated over the same period, starting at 0.97 in 2019, dropping to 0.40 in 2021 and 2022, then slightly increasing to 0.50 in 2023. This ratio reflects the company's overall efficiency in generating sales from all its assets, including both fixed and current assets. The lower values in 2021 and 2022 suggest a potential decrease in the overall efficiency of asset utilization during those years.
In conclusion, while the fixed asset turnover ratio shows a positive trend, indicating improved efficiency in utilizing fixed assets, the total asset turnover ratio fluctuates over the years, suggesting varying levels of efficiency in utilizing all assets to generate sales. Further analysis and comparison with industry benchmarks may provide additional insights into Collegium Pharmaceutical Inc's long-term asset management and operational performance.