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.