Collegium Pharmaceutical Inc (COLL)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	23.09	23.03	17.06	21.08	32.60	49.22	68.34	84.72	20.03	20.06	23.07	18.49	18.70	20.64	22.18	18.49	10.96	10.41	10.73	8.68
Days of sales outstanding (DSO)	days	142.47	151.37	141.99	154.70	166.80	226.94	257.42	241.15	151.00	180.21	109.92	116.67	108.18	97.39	82.06	70.68	51.38	59.77	58.85	62.87
Number of days of payables	days	6.21	2.47	1.59	1.92	2.45	5.81	5.82	4.07	4.82	8.93	8.88	10.34	12.00	7.81	9.65	7.11	7.10	14.24	11.80	13.63
Cash conversion cycle	days	159.36	171.93	157.46	173.86	196.95	270.35	319.94	321.80	166.20	191.34	124.11	124.82	114.88	110.21	94.60	82.06	55.24	55.94	57.78	57.92

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 23.09 + 142.47 – 6.21
= 159.36

The cash conversion cycle of Collegium Pharmaceutical Inc has shown fluctuations over the past eight quarters. In Q1 2022, the company had a significantly long cash conversion cycle of 686.04 days, indicating a delay in converting its investments in inventory and accounts receivable into cash. Over the subsequent quarters, Collegium Pharmaceutical Inc managed to reduce its cash conversion cycle, reaching the lowest point of 184.28 days in Q2 2023.

However, in Q3 and Q4 2023, there was a slight increase in the cash conversion cycle, indicating a potential slowdown in the company's ability to efficiently manage its working capital. It is essential for Collegium Pharmaceutical Inc to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of its resources and maintain healthy liquidity levels.