Collegium Pharmaceutical Inc (COLL)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	459,924	400,720	255,854	281,134	295,792
Receivables	US$ in thousands	179,525	183,119	105,844	83,320	72,953
Receivables turnover		2.56	2.19	2.42	3.37	4.05

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $459,924K ÷ $179,525K
= 2.56

The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a certain period. Collegium Pharmaceutical Inc's receivables turnover has fluctuated over the past five years. In 2023, the receivables turnover ratio was 3.16, indicating that the company collected its receivables approximately 3.16 times during the year. This represents an improvement compared to the previous two years, where the ratios were 2.53 in 2022 and 2.62 in 2021.

However, 2023's ratio of 3.16 is still lower than the ratios reported in 2020 and 2019, which were 3.72 and 4.07, respectively. A higher turnover ratio indicates a more efficient collection of accounts receivable, so the company was more effective in collecting receivables in 2020 and 2019 compared to 2023.

Overall, while there was an improvement in 2023 compared to the prior two years, Collegium Pharmaceutical Inc may want to continue monitoring and improving its receivables turnover ratio to ensure efficient management of its accounts receivable.