Collegium Pharmaceutical Inc (COLL)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	254,105	225,559	219,450	226,700	240,598	265,314	277,090	286,555	254,445	203,309	167,865	129,383	126,251	129,535	127,788	124,779	130,180	147,289	163,060	182,020
Inventory	US$ in thousands	35,560	38,032	27,862	31,276	32,332	34,125	26,026	32,895	46,501	64,652	77,769	80,146	17,394	17,358	19,595	15,498	15,614	17,146	18,815	15,963
Inventory turnover		7.15	5.93	7.88	7.25	7.44	7.77	10.65	8.71	5.47	3.14	2.16	1.61	7.26	7.46	6.52	8.05	8.34	8.59	8.67	11.40

December 31, 2024 calculation

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

The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating the number of times it sells and replaces its inventory over a specific period. A higher inventory turnover ratio generally indicates that a company is selling its inventory quickly and efficiently.

Analyzing Collegium Pharmaceutical Inc's inventory turnover data from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The trend indicates a decrease in inventory turnover from a high of 11.40 in March 2020 to a low of 1.61 in March 2022 before gradually increasing again.

From March 2020 to September 2021, the inventory turnover ratio decreased steadily, reaching its lowest point in March 2022. This decline may suggest potential issues with inventory management or slower sales during this period.

However, starting from June 2022, the inventory turnover ratio began to recover, indicating improvements in inventory management efficiency. The ratio increased steadily through December 2024, reaching 7.15.

Overall, while Collegium Pharmaceutical Inc experienced a significant decline in inventory turnover in the earlier periods, the subsequent increase suggests the company has made efforts to enhance its inventory management practices and improve the efficiency of its operations. Monitoring this ratio going forward will be important to assess the company's ability to efficiently manage its inventory levels and optimize its sales processes.