Catalyst Pharmaceuticals Inc (CPRX)

Short-term

Turnover ratios

Catalyst Pharmaceuticals Inc's activity ratios provide insights into the efficiency of the company's management of its assets and liabilities over the past five years.

1. Inventory turnover:
- The inventory turnover ratio has fluctuated over the years, with a peak of 26.39 in 2019 and a low of 9.09 in 2021. This ratio indicates how many times the company's inventory is sold and replaced during the year. A higher ratio generally signifies efficient inventory management.

2. Receivables turnover:
- The receivables turnover ratio has been relatively high, indicating the company's ability to collect outstanding receivables efficiently. The notable decrease in 2023 compared to 2022 suggests a potential change in the company's credit policies or customer base.

3. Payables turnover:
- The payables turnover ratio has varied, with the highest value seen in 2011 and the lowest in 2019. This ratio reflects how quickly the company pays its suppliers. A higher ratio implies that the company is paying its obligations promptly.

4. Working capital turnover:
- The working capital turnover ratio has shown fluctuations, with a notable increase in 2023 compared to 2022. This ratio measures how efficiently the company is utilizing its working capital to generate sales. A higher ratio suggests effective management of working capital.

Overall, analyzing Catalyst Pharmaceuticals Inc's activity ratios provides valuable insights into the company's operational efficiency and the effectiveness of its asset and liability management strategies over the years.

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Average number of days

The Days of Inventory on Hand (DOH) for Catalyst Pharmaceuticals Inc has shown a fluctuating trend over the past five years, ranging from 13.83 days in 2019 to 40.17 days in 2021. The decrease in 2020 followed by an increase in 2021 indicates potential inventory management challenges, as the company took longer to sell its inventory in 2021 compared to previous years.

The Days of Sales Outstanding (DSO) show a varying pattern as well, with a significant decrease from 37.59 days in 2019 to 17.15 days in 2021 before increasing slightly to 49.05 days in 2023. The lower DSO in 2021 suggests that Catalyst Pharmaceuticals improved its collection efficiency, but the increase in 2023 raises concerns about the company's ability to collect receivables promptly.

In terms of the Number of Days of Payables, Catalyst Pharmaceuticals has managed to reduce its payment cycle from 29.10 days in 2019 to 14.13 days in 2021, indicating that the company took fewer days to pay its suppliers. However, the increase in 2023 to 24.74 days may suggest a shift in payment practices, potentially impacting relationships with suppliers.

Overall, while Catalyst Pharmaceuticals has made progress in managing its inventory and payables efficiently, the fluctuating trends in DSO and DOH highlight the importance of closely monitoring and optimizing working capital management practices to ensure long-term financial stability and growth.

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Long-term

Catalyst Pharmaceuticals Inc's long-term activity ratios provide insights into how effectively the company is utilizing its assets to generate sales. The fixed asset turnover ratio has shown significant fluctuations over the years, ranging from 146.85 to 915.95. This ratio indicates that in the most recent year, for every dollar of fixed assets, Catalyst Pharmaceuticals generated approximately $333.23 in sales, reflecting a relatively high level of efficiency in utilizing its fixed assets.

On the other hand, the total asset turnover ratio has fluctuated within a narrower range, from 0.57 to 0.91. This ratio reflects the company's ability to generate sales from all its assets, including both fixed and current assets. A total asset turnover of 0.85 in 2023 suggests that Catalyst Pharmaceuticals generated $0.85 in sales for every dollar invested in total assets.

Overall, the trends in both ratios indicate variations in asset utilization efficiency over the years, with the fixed asset turnover ratio showing more significant fluctuations compared to the total asset turnover ratio. Further analysis would be needed to understand the factors driving these fluctuations and their implications for the company's operational efficiency and long-term financial performance.