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