Catalyst Pharmaceuticals Inc (CPRX)

Days of inventory on hand (DOH)

		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
Inventory turnover		12.87	17.80	12.73	11.33	13.69	12.24	10.31	9.77	9.09	9.95	9.24	14.68	13.17	12.40	31.43	25.20	22.09	57.24	94.56	153.74
DOH	days	28.37	20.51	28.66	32.21	26.66	29.82	35.41	37.38	40.17	36.68	39.51	24.86	27.71	29.44	11.61	14.48	16.53	6.38	3.86	2.37

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.87
= 28.37

The days of inventory on hand (DOH) for Catalyst Pharmaceuticals Inc fluctuated over the past few years. From December 2019 to March 2020, the DOH increased significantly from 3.86 days to 16.53 days. This rise indicated that the company was holding onto inventory for a longer period, potentially facing challenges in managing its inventory levels efficiently.

However, from March 2020 to December 2020, there was a notable decrease in DOH from 16.53 days to 2.37 days, suggesting that the company improved its inventory management practices and was able to sell inventory faster.

The trend continued in the following years, with some fluctuation but overall showing a decreasing pattern in DOH. By September 2021, DOH reached its lowest point of 2.37 days, indicating that Catalyst Pharmaceuticals had successfully optimized its inventory turnover and was maintaining leaner inventory levels.

The subsequent increase in DOH from September 2021 to March 2023 may suggest a change in inventory management strategy or challenges in demand forecasting during that period. However, the DOH remained relatively stable around 30 days from June 2023 to December 2023, indicating that the company might have found a balance in managing its inventory levels efficiently.

Overall, the analysis of Catalyst Pharmaceuticals Inc's DOH highlights the importance of monitoring inventory turnover and efficiency in managing inventory levels to support operational and financial performance.