Collegium Pharmaceutical Inc (COLL)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.08 | 61.54 | 46.34 | 50.36 | 49.05 | 46.95 | 34.28 | 41.90 | 66.71 | 116.07 | 169.10 | 226.10 | 50.29 | 48.91 | 55.97 | 45.33 | 43.78 | 42.49 | 42.12 | 32.01 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 51.08 | 61.54 | 46.34 | 50.36 | 49.05 | 46.95 | 34.28 | 41.90 | 66.71 | 116.07 | 169.10 | 226.10 | 50.29 | 48.91 | 55.97 | 45.33 | 43.78 | 42.49 | 42.12 | 32.01 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.08 + — – —
= 51.08
The cash conversion cycle of Collegium Pharmaceutical Inc has shown fluctuating trends over the past few years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to June 30, 2021, the cash conversion cycle increased steadily, indicating the company took longer to convert its investments into cash. This prolonged cycle could suggest issues with inventory management or delays in collecting receivables.
However, from September 30, 2021, to December 31, 2024, there was some improvement as the cash conversion cycle fluctuated within a range, albeit with periodic increases. This indicates efforts to streamline operations and manage working capital more efficiently.
It's notable that in March 31, 2022, the cash conversion cycle spiked significantly to 226.10 days, indicating a potential liquidity crunch or operational inefficiencies during that period. Despite this spike, the company managed to bring down the cash conversion cycle substantially by June 30, 2022.
Overall, Collegium Pharmaceutical Inc should continue monitoring and managing its cash conversion cycle to ensure efficient working capital management and sustained liquidity in the future.
Peer comparison
Dec 31, 2024