Catalyst Pharmaceuticals Inc (CPRX)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	201,267	160,806	136,911	117,031	93,156	87,288	80,919	76,435	71,512	69,159	65,560	64,456	61,273	58,858	57,449	55,725	43,223	34,342	25,531	14,913
Payables	US$ in thousands	14,795	4,598	4,421	3,391	3,975	2,529	2,315	5,139	2,768	2,752	2,924	2,561	4,256	2,005	5,805	1,348	4,117	4,147	3,329	2,940
Payables turnover		13.60	34.97	30.97	34.51	23.44	34.51	34.95	14.87	25.84	25.13	22.42	25.17	14.40	29.36	9.90	41.34	10.50	8.28	7.67	5.07

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $201,267K ÷ $14,795K
= 13.60

The payables turnover ratio for Catalyst Pharmaceuticals Inc has fluctuated over the past several quarters, indicating variability in the company's management of payables. The ratio ranged from a low of 5.07 in March 2019 to a high of 41.34 in March 2020.

A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently within a given period. In contrast, a lower ratio could indicate that the company is taking longer to pay its bills, which may have strategic implications such as maintaining liquidity or managing relationships with suppliers.

The sharp increase in the ratio from March 2019 to March 2020 (from 10.50 to 41.34) suggests that Catalyst Pharmaceuticals Inc improved its efficiency in managing payables during that period. Subsequently, the ratio remained relatively high, but with some fluctuations, reaching 34.97 in September 2023.

Overall, the company's payables turnover ratio indicates a degree of efficiency in managing its accounts payable, with fluctuations reflecting potential changes in the company's payment practices or relationships with suppliers. Further analysis and comparison with industry norms would provide additional insights into Catalyst Pharmaceuticals Inc's performance in this area.