Corcept Therapeutics Incorporated (CORT)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	191,206	185,515	175,110	169,384	158,233	148,069	143,375	135,659	127,637	120,948	116,879	112,272	110,908	112,525	110,482	109,644	105,860	100,432	97,352	92,519
Inventory	US$ in thousands	7,730	7,513	6,915	6,409	6,100	6,046	5,437	5,079	4,988	4,994	4,669	4,948	4,910	4,817	4,927	5,084	5,424	5,462	5,142	5,000
Inventory turnover		24.74	24.69	25.32	26.43	25.94	24.49	26.37	26.71	25.59	24.22	25.03	22.69	22.59	23.36	22.42	21.57	19.52	18.39	18.93	18.50

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $191,206K ÷ $7,730K
= 24.74

To analyze Corcept Therapeutics Inc's inventory turnover, we can see a fluctuating trend over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by showing how many times the company sells and replaces its inventory within a specific period.

In terms of inventory turnover, we observe a general decline starting from Q1 2022, where the ratio was at its peak of 1.04. The ratio decreased to 0.96 in Q2 2022 and continued to decline in subsequent quarters, reaching its lowest point in Q4 2023 at 0.84. This suggests that the company is taking longer to sell and replace its inventory items, indicating a potential inefficiency in managing its inventory levels.

Fluctuations in inventory turnover can be influenced by various factors such as changes in demand, production delays, or inadequate inventory management practices. A low inventory turnover ratio may indicate excess inventory levels or slow-moving inventory, which could tie up working capital and lead to higher holding costs.

Corcept Therapeutics Inc should closely monitor its inventory turnover and implement strategies to improve the efficiency of its inventory management. This could include optimizing inventory levels, improving demand forecasting, and streamlining supply chain processes to ensure timely replenishment of stock and reduce the risk of obsolescence.