Collegium Pharmaceutical Inc (COLL)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	399,806	426,631	316,970	304,692	324,861
Inventory	US$ in thousands	32,332	46,501	17,394	15,614	9,643
Inventory turnover		12.37	9.17	18.22	19.51	33.69

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $399,806K ÷ $32,332K
= 12.37

The inventory turnover ratio of Collegium Pharmaceutical Inc has fluctuated over the past five years. The ratio indicates how efficiently the company is managing its inventory to generate sales.

In 2023, the inventory turnover was 2.93 times, representing a slight increase from the previous year's 2.54. This suggests that the company took about 2.93 days to sell and replace its inventory during the year.

Compared to 2021 and 2020, where the inventory turnover ratios were 3.40 and 4.45 respectively, the ratio has decreased, indicating a potential slowdown in inventory management efficiency.

However, it is worth noting that the inventory turnover ratio was significantly higher in 2019 at 20.08, which may have been due to various factors such as seasonality or specific business circumstances.

Overall, Collegium Pharmaceutical Inc's inventory turnover has shown some variability over the years, and it is important for stakeholders to closely monitor this ratio to assess the company's inventory management effectiveness.