Catalyst Pharmaceuticals Inc (CPRX)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	68,845	84,532	34,393	21,884	17,039
Inventory	US$ in thousands	19,541	15,644	6,805	7,870	4,651
Inventory turnover		3.52	5.40	5.05	2.78	3.66

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $68,845K ÷ $19,541K
= 3.52

Inventory turnover measures how efficiently a company manages its inventory. It indicates how many times a company's inventory is sold and replaced over a period. In the case of Catalyst Pharmaceuticals Inc, the inventory turnover has shown variability over the years.

In 2020, the inventory turnover ratio was 3.66, indicating that the company's inventory was turning over approximately 3.66 times during the year. However, by the end of 2021, this ratio decreased to 2.78, suggesting that the company's inventory management may have been less efficient that year.

There was a significant improvement in inventory turnover in 2022, reaching 5.05, indicating that the company was able to sell and replace its inventory more frequently. This trend continued in 2023, with the ratio increasing to 5.40, showing further enhancement in inventory management efficiency.

However, in 2024, the inventory turnover ratio declined to 3.52, which was lower than the previous two years. This could potentially signify that the company faced challenges in managing its inventory efficiently during that year.

Overall, the trend in Catalyst Pharmaceuticals Inc's inventory turnover reflects fluctuations in inventory management performance. It is important for the company to consistently monitor and improve its inventory turnover to optimize its working capital and overall operational efficiency.