Corcept Therapeutics Incorporated (CORT)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	10,882	9,803	8,581	7,631	6,482	6,085	5,779	5,521	5,385	5,259	5,195	5,263	5,281	5,181	5,122	4,972	5,582	5,764	5,999	6,142
Inventory	US$ in thousands	12,412	8,050	8,350	7,190	7,730	7,513	6,915	16,565	17,031	6,046	17,415	5,079	17,950	4,994	4,669	4,948	21,157	4,817	4,927	16,147
Inventory turnover		0.88	1.22	1.03	1.06	0.84	0.81	0.84	0.33	0.32	0.87	0.30	1.04	0.29	1.04	1.10	1.00	0.26	1.20	1.22	0.38

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,882K ÷ $12,412K
= 0.88

The inventory turnover ratio is a measure of how efficiently a company manages its inventory. It indicates how many times a company's inventory is sold and replaced within a specific period.

Analyzing the inventory turnover of Corcept Therapeutics Incorporated from March 31, 2020, to December 31, 2024, reveals fluctuations in the efficiency of managing inventory. The inventory turnover ratio ranged from a low of 0.26 on December 31, 2020, to a high of 1.22 on June 30, 2020, and September 30, 2024.

A low inventory turnover ratio may suggest overstocking or slow-moving inventory, which could tie up working capital and lead to potential obsolescence or storage costs. On the other hand, a high inventory turnover ratio indicates efficient management of inventory, quick sales turnover, and potentially lower carrying costs.

Corcept Therapeutics experienced some variability in its inventory turnover, with fluctuations observed from quarter to quarter. Overall, the company showed improvements in inventory turnover efficiency, with higher ratios seen in recent quarters, indicating better management of inventory levels.

It is essential for Corcept Therapeutics to monitor its inventory turnover ratio consistently to optimize inventory levels, balance carrying costs, and improve operational efficiency. Additionally, comparing these ratios with industry benchmarks can provide insights into the company's competitive positioning and operational effectiveness.