Catalyst Pharmaceuticals Inc (CPRX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		4.00	4.07	4.24	3.19	3.90	5.24	3.99	3.72	5.05	4.28	3.34	2.95	2.78	2.79	2.53	4.00	3.66	3.49	9.34	7.78
DOH	days	91.22	89.74	86.17	114.51	93.57	69.64	91.58	98.04	72.22	85.22	109.40	123.71	131.26	130.72	144.11	91.20	99.63	104.60	39.07	46.92

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.00
= 91.22

Based on the provided data, Catalyst Pharmaceuticals Inc's Days of Inventory on Hand (DOH) is a measure that indicates how many days, on average, the company holds its inventory before it is sold.

The trend in Catalyst Pharmaceuticals Inc's DOH over the documented periods shows some fluctuations. The average DOH was around 100 days from December 2020 to March 2023, reflecting an extended period of time that inventory was held by the company. Notably, the peak DOH was observed in June 2021, where it reached 144.11 days, indicating a significant increase in the holding period of inventory.

However, from March 2023 onwards, there was a decreasing trend in the DOH, reaching a low of 69.64 days in September 2023. This decrease suggests that Catalyst Pharmaceuticals Inc was able to manage its inventory more efficiently, reducing the time taken to sell its inventory.

It is essential to analyze the reasons behind the fluctuations in DOH to assess the efficiency of Catalyst Pharmaceuticals Inc's inventory management. A high DOH could imply excessive inventory levels or slow-moving inventory, which may tie up company funds and lead to higher storage costs. On the other hand, a low DOH may indicate stockouts or inadequate inventory levels, potentially resulting in lost sales and dissatisfied customers.

Overall, monitoring and analyzing the DOH can provide valuable insights into Catalyst Pharmaceuticals Inc's inventory management practices and help in optimizing working capital utilization and operational efficiency.