Collegium Pharmaceutical Inc (COLL)

Liquidity ratios

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
Current ratio 42.69 0.97 1.11 1.21 1.17 1.16 1.24 1.21 1.55 0.98 0.99 0.97 1.37 1.35 1.40 1.29 1.45 1.08 0.99 0.92
Quick ratio 16.28 0.26 0.59 0.71 0.68 0.66 0.75 0.65 0.64 0.32 0.30 0.29 0.81 0.72 0.89 0.79 0.91 0.68 0.58 0.48
Cash ratio 16.28 0.26 0.59 0.71 0.68 0.66 0.75 0.65 0.64 0.32 0.30 0.29 0.81 0.72 0.89 0.79 0.91 0.68 0.58 0.48

Collegium Pharmaceutical Inc's liquidity ratios have displayed some fluctuations over the reported periods. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally improved from the first quarter of 2020 to the end of 2021. However, a significant anomaly was observed in the last reported quarter of December 2024, with the current ratio soaring to an unusually high value of 42.69. This aberration may require further investigation to ascertain its cause.

Moving on to the quick ratio, which provides a stricter measure of liquidity by excluding inventory from current assets, the trend shows some variability over time. While the quick ratio generally improved from the first quarter of 2020 to the end of 2023, there was a notable decrease in the last reported quarter of December 2024. This decline may warrant attention to understand the factors contributing to the reduced liquidity position.

Lastly, the cash ratio, which is the most stringent liquidity measure focusing solely on cash and cash equivalents, follows a similar pattern to the quick ratio. The cash ratio improved until the third quarter of 2023 but decreased notably in the last reported quarter of December 2024. This decrease in the cash ratio may indicate a potential strain on the company's cash reserves and necessitate a closer examination of its cash management practices.

In conclusion, Collegium Pharmaceutical Inc's liquidity ratios have experienced fluctuations, with some concerning trends in the most recent reporting period. Further analysis and monitoring of the company's liquidity position are recommended to ensure its ability to meet short-term obligations effectively.


Additional liquidity measure

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
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

The cash conversion cycle measures how efficiently a company manages its working capital, including accounts receivable, inventory, and accounts payable. A shorter cash conversion cycle implies that the company is collecting cash from sales and converting it back into cash quickly.

Looking at Collegium Pharmaceutical Inc's cash conversion cycle data from March 31, 2020 to December 31, 2024, we observe fluctuations in the cycle over time. The company's cash conversion cycle ranged from a low of 32.01 days to a high of 226.10 days during this period.

From March 31, 2020 to June 30, 2021, the cash conversion cycle generally increased, indicating the company was taking longer to convert its investments in inventory and accounts receivable into cash. This could suggest potential issues with inventory management or collection of receivables.

However, from September 30, 2021 to June 30, 2024, there was a downward trend in the cash conversion cycle, implying improved efficiency in managing working capital. The company was able to reduce the time it took to convert its investments back into cash during this period.

The substantial increase in the cash conversion cycle on March 31, 2022, followed by a sharp decline by the end of 2024, signals significant fluctuations that may require further investigation. Such volatility could potentially impact liquidity and cash flow management.

In summary, Collegium Pharmaceutical Inc has experienced fluctuations in its cash conversion cycle over the years, with periods of both improvement and challenges in working capital management. Monitoring the trend of the cash conversion cycle is essential for assessing the company's operational efficiency and financial health.