Catalyst Pharmaceuticals Inc (CPRX)

Days of inventory on hand (DOH)

		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
DOH	days	103.60	67.55	72.22	131.26	99.63

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.52
= 103.60

The days of inventory on hand (DOH) for Catalyst Pharmaceuticals Inc have shown varying trends over the years. In December 31, 2020, the DOH was reported at 99.63 days, indicating that the company held inventory for approximately 99.63 days on average.

By December 31, 2021, the DOH had increased to 131.26 days, suggesting a lengthening of the inventory holding period. This could indicate potential challenges in managing inventory levels efficiently or possible issues with inventory turnover.

In contrast, by December 31, 2022, the DOH decreased significantly to 72.22 days, signaling an improvement in inventory management efficiency or possibly an adjustment in inventory levels to align with demand.

Subsequently, by December 31, 2023, the DOH further decreased to 67.55 days, indicating a continued improvement in inventory management practices. A lower DOH implies that the company is holding less inventory on hand, which could lead to lower storage costs and a more agile supply chain.

However, by December 31, 2024, the DOH increased again to 103.60 days, showing a reversal in the downward trend observed in the previous years. This increase may warrant further investigation to understand the reasons behind the uptick in inventory holding period.

Overall, the fluctuating trend in Catalyst Pharmaceuticals Inc's DOH highlights the importance of monitoring inventory levels closely to optimize working capital management and operational efficiency.