Collegium Pharmaceutical Inc (COLL)

Liquidity ratios

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
Current ratio 1.17 1.16 1.24 1.21 0.97 0.98 0.99 0.97 1.13 1.35 1.40 1.29 1.16 1.08 0.99 0.92 1.27 1.24 1.25 1.24
Quick ratio 1.24 1.15 1.24 1.09 0.82 0.80 0.77 0.73 1.05 1.27 1.29 1.20 1.08 1.00 0.90 0.82 1.20 1.18 1.17 1.16
Cash ratio 0.84 0.75 0.86 0.65 0.40 0.32 0.30 0.29 0.67 0.72 0.89 0.79 0.73 0.68 0.58 0.48 0.84 0.76 0.76 0.71

Collegium Pharmaceutical Inc's liquidity ratios have shown fluctuations over the past eight quarters.

The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has been above 1 in most quarters, indicating that Collegium Pharmaceutical Inc has generally been able to meet its current obligations. However, it peaked at 1.24 in Q2 2023, suggesting an improved short-term financial position compared to previous quarters.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. While Collegium Pharmaceutical Inc's quick ratio has varied, it has generally been above 1 in recent quarters, indicating a reasonable ability to meet short-term obligations without relying on inventory. The ratio improved to 1.18 in Q2 2023, indicating improved liquidity without inventory considerations.

The cash ratio, which is the most conservative liquidity ratio, measures the company's ability to cover its short-term liabilities with its most liquid assets, namely cash and cash equivalents. Collegium Pharmaceutical Inc's cash ratio has shown significant improvement over the quarters, reaching 0.79 in Q2 2023. This suggests that the company had a higher proportion of cash on hand relative to its current liabilities in that quarter.

Overall, Collegium Pharmaceutical Inc's liquidity ratios demonstrate some variability, but generally indicate a satisfactory ability to cover short-term obligations, with improvements seen in the most recent quarters. The company's strengthening liquidity position, particularly in terms of cash reserves, bodes well for its short-term financial health and ability to meet obligations as they come due.

Additional liquidity measure

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
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

The cash conversion cycle of Collegium Pharmaceutical Inc has displayed fluctuating trends over the past eight quarters. In Q1 2022, the company had a significantly lengthy cash conversion cycle of 686.04 days, indicating a prolonged period between the company's expenditure on production and receipt of cash from sales. This was followed by a gradual improvement in Q2 2022 and Q3 2022, although the cycle still remained high at 563.50 days and 422.08 days, respectively.

However, in subsequent quarters from Q4 2022 to Q2 2023, Collegium Pharmaceutical Inc managed to significantly reduce its cash conversion cycle to a range between 184.28 days and 276.89 days. This downward trend suggests more efficient management of working capital, resulting in quicker conversion of inventory into cash.

It is worth noting that the cash conversion cycle increased slightly in Q3 2023 to 220.92 days from the previous quarter, but remained relatively lower compared to the earlier quarters. Overall, Collegium Pharmaceutical Inc has shown improvement in its cash conversion cycle, reflecting enhanced efficiency in inventory management, accounts receivable collection, and payment of accounts payable.