Corcept Therapeutics Incorporated (CORT)

Short-term

Turnover ratios

Analyzing Corcept Therapeutics Inc's activity ratios over the past five years provides insights into how efficiently the company is managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- The inventory turnover ratio has been declining from 1.14 in 2020 to 0.84 in 2023. This indicates that it takes longer for Corcept Therapeutics to sell its inventory, potentially leading to excess or obsolete inventory.

2. Receivables Turnover:
- The receivables turnover ratio has also been decreasing over the years from 15.38 in 2019 to 11.73 in 2023. This suggests that the company is taking longer to collect payments from its customers, which may impact its cash flow and working capital management.

3. Payables Turnover:
- The payables turnover ratio has shown fluctuations but generally stayed low, with a decrease from 0.73 in 2019 to 0.37 in 2023. This implies that Corcept Therapeutics is taking more time to pay its suppliers, which can strain relationships or have implications for liquidity.

4. Working Capital Turnover:
- The working capital turnover ratio has varied significantly, with a sharp increase from 0.82 in 2020 to 1.67 in 2021 before dropping to 1.36 in 2023. This ratio reflects how effectively the company is utilizing its working capital to generate sales. The fluctuations indicate changes in operational efficiency and sales generation through working capital.

Overall, Corcept Therapeutics Inc's activity ratios suggest a need for improvement in managing inventory levels, accelerating the collection of receivables, optimizing payment cycles with suppliers, and enhancing the efficiency of working capital utilization to drive profitability and liquidity in the long term.

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Average number of days

The activity ratios of Corcept Therapeutics Inc provide insights into the efficiency of the company's inventory management, accounts receivable collection, and accounts payable payment.

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand has shown an increasing trend over the past five years, indicating that Corcept Therapeutics Inc is holding onto inventory for a longer period before it is sold or used. This could suggest possible inefficiencies in inventory management or challenges in forecasting demand accurately.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding has shown a slight increasing trend, with a peak in 2023. This metric measures how quickly the company is collecting payments from its customers. The increase in DSO could indicate potential issues with accounts receivable collection or extending credit terms to customers.

3. Number of Days of Payables:
- The Number of Days of Payables has fluctuated over the years but has been relatively high, especially in 2023 and 2022. This metric reflects how long it takes for the company to pay its suppliers. The higher number of days indicates that Corcept Therapeutics Inc is taking longer to settle its payables, which could be a deliberate strategy to manage cash flow or negotiate better payment terms with suppliers.

Overall, while the company's activity ratios provide some insights into its operational efficiency and working capital management, further analysis and comparison with industry benchmarks would be necessary to fully assess the impact of these ratios on the company's performance and competitiveness.

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Long-term

The fixed asset turnover ratio for Corcept Therapeutics Inc has exhibited significant fluctuations over the past five years, increasing from 291.89 in 2019 to 2,473.72 in 2023. This indicates a substantial improvement in the company's ability to generate revenue from its fixed assets. The substantial increase in the ratio suggests that Corcept has become more efficient in utilizing its fixed assets to generate sales.

Conversely, the total asset turnover ratio displays a less erratic trend, fluctuating within a narrower range between 0.62 in 2020 and 0.86 in 2021. Although there is no consistent pattern evident in the total asset turnover ratio over the period, the ratio has generally been below 1, indicating that Corcept may not be fully leveraging its total assets to generate sales revenue efficiently.

In conclusion, while the fixed asset turnover ratio for Corcept Therapeutics Inc has shown marked improvement over the past five years, the total asset turnover ratio has been more volatile and remained below 1 for most of the period. These ratios suggest that the company may need to focus on optimizing the use of its total assets to enhance its overall efficiency in generating sales.