Collegium Pharmaceutical Inc (COLL)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	254,105	240,598	254,445	126,251	130,180
Inventory	US$ in thousands	35,560	32,332	46,501	17,394	15,614
Inventory turnover		7.15	7.44	5.47	7.26	8.34

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $254,105K ÷ $35,560K
= 7.15

The inventory turnover ratio for Collegium Pharmaceutical Inc has shown some fluctuations over the past five years. In December 2020, the ratio stood at 8.34, indicating that the company's inventory turned over approximately 8.34 times during that year. However, by the end of December 2022, the ratio decreased to 5.47, suggesting a decrease in the efficiency of managing inventory.

Subsequently, there was an improvement in the inventory turnover ratio, reaching 7.44 by December 2023 and then slightly decreasing to 7.15 by December 2024. These figures suggest that Collegium Pharmaceutical Inc has been able to better manage its inventory levels and turnover during these years, although there was a slight dip in 2022.

Overall, the trend indicates that the company has been able to maintain a relatively healthy inventory turnover rate, which is essential for managing working capital effectively and optimizing cash flows. Further analysis of industry benchmarks and specific reasons behind the fluctuations in the ratio could provide more insights into the company's inventory management practices.