Collegium Pharmaceutical Inc (COLL)

Working capital 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
Revenue (ttm) US$ in thousands 459,924 438,505 430,531 422,636 400,720 314,280 280,041 251,774 255,854 301,783 299,168 291,446 281,134 286,592 361,135 441,180 518,290 515,321 504,149 494,269
Total current assets US$ in thousands 537,600 537,086 537,297 498,300 419,989 405,216 409,774 363,638 315,543 363,238 318,532 296,311 277,888 262,132 250,813 223,675 255,720 249,785 244,563 233,843
Total current liabilities US$ in thousands 457,915 464,612 435,058 412,702 433,726 414,497 415,094 373,573 279,566 268,973 226,843 230,168 239,451 242,437 252,111 244,374 201,765 201,483 196,272 188,885
Working capital turnover 5.77 6.05 4.21 4.94 — — — — 7.11 3.20 3.26 4.41 7.31 14.55 — — 9.61 10.67 10.44 10.99

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $459,924K ÷ ($537,600K – $457,915K)
= 5.77

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better efficiency in managing working capital.

In the case of Collegium Pharmaceutical Inc, the working capital turnover ratio has shown some fluctuation in recent quarters. In Q4 2023, the ratio stands at 7.11, reflecting a slight decrease from the previous quarter. However, the ratio remains relatively high, suggesting that the company is effectively using its current assets to support its business operations and generate sales.

Looking back over the past few quarters, the working capital turnover ratio has generally been at healthy levels, indicating that Collegium Pharmaceutical Inc is efficiently managing its working capital. It is important for the company to maintain this level of efficiency to support its ongoing operations and growth strategies.

Overall, Collegium Pharmaceutical Inc's working capital turnover ratio demonstrates good management of its working capital to support revenue generation. It is essential for the company to continue monitoring and optimizing this ratio to ensure continued operational efficiency and financial stability.