Collegium Pharmaceutical Inc (COLL)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	511,052	540,858	556,943	569,507	520,607	479,414	415,356	345,282	316,970	315,898	310,062	306,007	304,692	303,272	309,582	315,048	321,173	307,172	338,520	367,767
Inventory	US$ in thousands	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	9,643	8,760	9,953	8,741
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $511,052K ÷ $32,332K
= 15.81

Collegium Pharmaceutical Inc's inventory turnover has shown an increasing trend over the past eight quarters. The inventory turnover ratio, which measures how efficiently the company manages its inventory by indicating how many times a year the inventory is sold and replaced, has improved from 0.75 in Q1 2022 to 4.70 in Q2 2023. This signifies that Collegium Pharmaceutical Inc is managing its inventory more effectively and selling products at a quicker pace.

A higher inventory turnover ratio indicates that Collegium Pharmaceutical Inc is selling its inventory faster, which can lead to lower carrying costs and potentially improved cash flow. It also suggests that the company is effectively managing its supply chain and production levels to match demand.

The significant increase in inventory turnover from Q1 2023 to Q2 2023, where the ratio jumped from 4.01 to 4.70, indicates that Collegium Pharmaceutical Inc has optimized its inventory management practices during this period.

Overall, the upward trend in inventory turnover for Collegium Pharmaceutical Inc reflects positively on its operational efficiency and ability to convert inventory into sales.