Collegium Pharmaceutical Inc (COLL)
Working capital 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 |
| Total current assets | US$ in thousands | 537,600 | 419,989 | 315,543 | 277,888 | 255,720 |
| Total current liabilities | US$ in thousands | 457,915 | 433,726 | 279,566 | 239,451 | 201,765 |
| Working capital turnover | 5.77 | — | 7.11 | 7.31 | 5.48 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $459,924K ÷ ($537,600K – $457,915K)
= 5.77
The working capital turnover ratio for Collegium Pharmaceutical Inc has shown variability over the past five years. In 2019, the company had a working capital turnover of 5.50, which increased to 8.07 in 2020, demonstrating an improvement in utilizing its working capital to generate revenue efficiently. This trend continued in 2021 with a slightly higher turnover of 7.70, indicating continued effectiveness in utilizing working capital.
However, there is a gap in the data for 2022, making it difficult to comment on the year-over-year trend. Nevertheless, in 2023, the working capital turnover ratio was recorded at 7.11, showing a slight decrease from the previous year.
Overall, Collegium Pharmaceutical Inc has generally demonstrated a solid ability to efficiently employ its working capital to generate sales revenue, as indicated by the calculated working capital turnover ratios. The company's management may want to analyze the factors contributing to fluctuations in the ratio to ensure continued operational efficiency and effective resource utilization.
Peer comparison
Dec 31, 2023