Catalyst Pharmaceuticals Inc (CPRX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.52 | 5.40 | 5.05 | 2.78 | 3.66 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 0.98 | 2.78 | 0.81 | 0.77 | 0.87 |
Catalyst Pharmaceuticals Inc's inventory turnover ratio has shown some fluctuations over the years. In 2020, the inventory turnover was 3.66, indicating that the company's inventory was sold and replaced approximately 3.66 times during the year. However, this ratio decreased to 2.78 in 2021 before increasing to 5.05 in 2022 and further to 5.40 in 2023, showing a significant improvement in the management of inventory. It then slightly dropped to 3.52 in 2024.
On the other hand, the receivables turnover and payables turnover ratios were not provided for any of the years, which makes it challenging to assess the efficiency of Catalyst Pharmaceuticals Inc in collecting receivables from customers and managing payments to suppliers.
Regarding the working capital turnover ratio, the company's activity level based on working capital has varied over the years. In 2020 and 2021, the working capital turnover was 0.87 and 0.77, respectively, indicating that Catalyst Pharmaceuticals Inc generated revenue of less than its total working capital during those years. However, this ratio significantly improved to 0.81 in 2022 before a substantial increase to 2.78 in 2023. In 2024, the working capital turnover slightly decreased to 0.98, but overall remained at a level higher compared to the initial years.
In conclusion, Catalyst Pharmaceuticals Inc has shown improvements in its inventory turnover and working capital turnover ratios, suggesting enhanced efficiency in managing inventory and working capital over the years. However, due to the absence of data on receivables turnover and payables turnover, a comprehensive analysis of the company's overall activity ratios is limited.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 103.60 | 67.55 | 72.22 | 131.26 | 99.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data on Catalyst Pharmaceuticals Inc's activity ratios, we can analyze the company's efficiency in managing its inventory, sales, and payables:
1. Days of Inventory on Hand (DOH):
- December 31, 2020: 99.63 days
- December 31, 2021: 131.26 days
- December 31, 2022: 72.22 days
- December 31, 2023: 67.55 days
- December 31, 2024: 103.60 days
The DOH shows the average number of days a company holds its inventory before selling it. A decreasing trend in DOH from 2021 to 2023 indicates the company is managing its inventory more efficiently. However, the increase in DOH in 2024 suggests a reversal in this trend, requiring further investigation into inventory management practices.
2. Days of Sales Outstanding (DSO):
- All years indicate a value of "— days"
DSO represents how long it takes for the company to collect payments after making a sale. The data provided does not include DSO values, which limits our ability to assess the efficiency of Catalyst Pharmaceuticals Inc in collecting its accounts receivable.
3. Number of Days of Payables:
- All years indicate a value of "— days"
The number of days of payables reflects the average time the company takes to pay its suppliers. The absence of data for the number of days of payables prevents us from evaluating how effectively Catalyst Pharmaceuticals Inc manages its trade payables.
In conclusion, while the information on Catalyst Pharmaceuticals Inc's DOH provides insights into its inventory management efficiency, the lack of data on DSO and payables days hinders a comprehensive analysis of the company's overall activity ratios and working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 252.90 | 35.42 | 915.95 |
| Total asset turnover | 0.58 | 0.85 | 0.57 | 0.59 | 0.62 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Catalyst Pharmaceuticals Inc, there has been a significant fluctuation in the fixed asset turnover ratio over the years.
In 2020, the company had an exceptionally high fixed asset turnover of 915.95, indicating that for each dollar invested in fixed assets, the company generated a substantial amount of revenue. However, this ratio dropped significantly to 35.42 in 2021 and then improved to 252.90 in 2022 before data became unavailable for 2023 and 2024.
On the other hand, the total asset turnover ratio assesses the company's overall efficiency in generating sales revenue from its total assets. Catalyst Pharmaceuticals Inc's total asset turnover ratio has been showing a decreasing trend over the years. The ratio decreased from 0.62 in 2020 to 0.59 in 2021, and further to 0.57 in 2022, before showing an improvement to 0.58 in 2024.
Overall, the trend in both fixed asset turnover and total asset turnover ratios for Catalyst Pharmaceuticals Inc indicates fluctuations in the company's efficiency in utilizing its assets to generate sales revenue. The varying ratios may suggest changes in the company's asset utilization strategies and operational efficiency over the analyzed period.