Collegium Pharmaceutical Inc (COLL)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	483,838	527,709	571,419	614,991	538,451	581,902	625,268	668,579	201,632	213,570	225,455	237,292	209,594	219,762	229,908	240,094	7,667	8,625	9,583	9,036
Total assets	US$ in thousands	1,143,310	1,177,580	1,213,910	1,214,300	1,174,130	1,200,940	1,245,570	1,246,140	692,077	741,803	713,735	646,065	643,841	643,843	646,870	634,793	306,302	303,978	301,581	294,362
Debt-to-assets ratio		0.42	0.45	0.47	0.51	0.46	0.48	0.50	0.54	0.29	0.29	0.32	0.37	0.33	0.34	0.36	0.38	0.03	0.03	0.03	0.03

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $483,838K ÷ $1,143,310K
= 0.42

The debt-to-assets ratio of Collegium Pharmaceutical Inc has shown some fluctuation over the past eight quarters, ranging from 0.58 to 0.66. This ratio indicates the proportion of the company's assets that are financed through debt. A higher debt-to-assets ratio suggests that a larger portion of the company's assets is funded by debt, which can signify higher financial risk due to potential difficulties in servicing debt obligations.

In the case of Collegium Pharmaceutical Inc, the ratio has hovered around 0.60 in most quarters, indicating a moderate level of leverage. The slight increase in the ratio from 0.58 in Q4 2022 to 0.66 in Q1 2023 may suggest a temporary increase in the company's reliance on debt to fund its assets. However, the subsequent decrease in Q2 and Q3 2023 to 0.62 and 0.60, respectively, may indicate efforts to manage debt levels and improve the overall financial stability of the company.

Overall, Collegium Pharmaceutical Inc's debt-to-assets ratio fluctuates within a relatively narrow range, suggesting a balanced approach to capital structure and financial risk management. It is important to monitor this ratio over time to assess the company's ability to sustain its debt obligations and support its asset base effectively.