Collegium Pharmaceutical Inc (COLL)

Days of inventory on hand (DOH)

		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
DOH	days	29.52	39.78	20.03	18.70	10.83

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.37
= 29.52

Collegium Pharmaceutical Inc's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The company's DOH increased from 18.17 days in 2019 to 82.00 days in 2020, indicating a significant rise in the number of days it takes for Collegium to sell its inventory. Subsequently, in 2021, the DOH decreased to 107.48 days but increased again in 2022 to 143.61 days. However, in 2023, there was a decrease in DOH to 124.44 days.

Overall, the trend suggests some volatility in the management of inventory levels at Collegium Pharmaceutical Inc. Higher DOH values indicate that the company may be carrying excess inventory, which could tie up working capital and increase holding costs. Conversely, lower DOH values may signify efficient inventory management but could also risk stockouts or potential lost sales. Further analysis and comparison with industry benchmarks are recommended to gain a better understanding of Collegium's inventory management efficiency and potential areas for improvement.