Collegium Pharmaceutical Inc (COLL)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		15.81	15.85	21.40	17.31	11.20	7.42	5.34	4.31	18.22	18.20	15.82	19.74	19.51	17.69	16.45	19.74	33.31	35.07	34.01	42.07
DOH	days	23.09	23.03	17.06	21.08	32.60	49.22	68.34	84.72	20.03	20.06	23.07	18.49	18.70	20.64	22.18	18.49	10.96	10.41	10.73	8.68

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.81
= 23.09

The days of inventory on hand (DOH) for Collegium Pharmaceutical Inc have shown fluctuations over the past eight quarters. In Q1 2022, the DOH was at its highest at 486.95 days, indicating the company held inventory for nearly 1.3 years. Subsequently, there was a decreasing trend in DOH, with Q2 2023 reporting the lowest value at 77.65 days, reflecting a significant reduction in the time it takes to sell inventory.

The downward trend in DOH from Q1 2022 to Q2 2023 suggests improved inventory management efficiency and a more effective sales strategy. This can be indicative of better demand forecasting, inventory control, and sales performance. However, the spike in DOH in Q3 2022 to 255.01 days and in Q4 2022 to 143.61 days may be a cause for concern as it indicates an increase in the time taken to sell inventory, potentially leading to excess or obsolete inventory.

Overall, Collegium Pharmaceutical Inc's DOH trend demonstrates a mix of inventory management effectiveness and potential challenges. It is essential for the company to maintain a balance in inventory levels to optimize working capital efficiency while ensuring product availability to meet customer demands.