Catalyst Pharmaceuticals Inc (CPRX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	218,242	93,674	71,512	61,273	51,640
Inventory	US$ in thousands	15,644	6,805	7,870	4,651	1,957
Inventory turnover		13.95	13.77	9.09	13.17	26.39

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $218,242K ÷ $15,644K
= 13.95

Catalyst Pharmaceuticals Inc's inventory turnover has shown varying trends over the past five years. The company's inventory turnover ratio was 13.95 in 2023, 13.77 in 2022, 9.09 in 2021, 13.17 in 2020, and 26.39 in 2019.

The inventory turnover ratio indicates how efficiently the company is managing its inventory levels by measuring the number of times inventory is sold and replaced within a specific period. A higher inventory turnover ratio generally suggests that the company is selling its products quickly and efficiently.

In this case, Catalyst Pharmaceuticals Inc's inventory turnover has been relatively consistent in recent years, with ratios typically above 10. This indicates that the company is effectively managing its inventory levels and turning over its inventory multiple times throughout the year, which is generally a positive sign.

However, the lower ratio in 2021 may suggest a decrease in inventory turnover efficiency that year. It would be important to further investigate the reasons behind this decline and monitor the company's inventory management practices to ensure optimal efficiency in the future.