Catalyst Pharmaceuticals Inc (CPRX)

Short-term

Turnover ratios

Based on the activity ratios provided for Catalyst Pharmaceuticals Inc, let's analyze them individually:

1. Inventory Turnover:
- The inventory turnover ratio represents how efficiently the company is managing its inventory. Catalyst Pharmaceuticals Inc's inventory turnover has fluctuated over the periods, ranging from a low of 2.53 to a high of 9.34. Generally, a higher inventory turnover indicates better inventory management and efficient sales.

2. Receivables Turnover:
- The absence of data for the receivables turnover ratio suggests that specific information on how quickly the company collects receivables is not available. This ratio typically measures the efficiency of the company in collecting outstanding receivables from its customers.

3. Payables Turnover:
- The lack of data for the payables turnover ratio indicates that information on how quickly the company pays its suppliers is not provided. This ratio measures how efficiently the company manages its accounts payable.

4. Working Capital Turnover:
- The working capital turnover ratio reflects how effectively the company is utilizing its working capital to generate sales. Catalyst Pharmaceuticals Inc's working capital turnover has varied, indicating changes in the efficiency of working capital utilization across different periods.

Overall, analyzing these activity ratios provides insights into Catalyst Pharmaceuticals Inc's operational efficiency, inventory management, and working capital utilization. The absence of data for receivables and payables turnover limits a comprehensive assessment of the company's performance in those specific areas.

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Average number of days

Based on the provided data for Catalyst Pharmaceuticals Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- DOH measures the average number of days it takes for a company to turn its inventory into sales.
- The DOH for Catalyst Pharmaceuticals Inc fluctuated over the observed period.
- The company managed its inventory more efficiently in some quarters compared to others.
- There was a decreasing trend in DOH from September 2022 to December 2023, indicating better inventory management.
- However, the DOH increased in the last three quarters of the data series, suggesting potential inventory challenges.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days a company takes to collect revenue after making a sale.
- The data provided did not include DSO figures, indicating that information on the company's sales collection efficiency is not available for analysis.

3. Number of Days of Payables:
- The data did not include information on the number of days of payables for Catalyst Pharmaceuticals Inc, preventing an analysis of the company's payment practices and liquidity management.

In conclusion, based on the available data, we observed fluctuations in Catalyst Pharmaceuticals Inc's Days of Inventory on Hand, while information on Days of Sales Outstanding and Number of Days of Payables was not provided for further analysis. Efficient management of these activity ratios is crucial for optimizing working capital and overall operational performance.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently Catalyst Pharmaceuticals Inc is utilizing its fixed assets to generate sales. From March 31, 2020, to June 30, 2022, the ratio exhibited an increasing trend, indicating improved efficiency in asset utilization. However, a significant drop was observed from June 30, 2022, to June 30, 2023, which may suggest challenges in maximizing the productivity of fixed assets during that period. Subsequently, the ratio showed fluctuating values, implying some instability in the company's fixed asset management.

On the other hand, the Total Asset Turnover ratio assesses how well Catalyst Pharmaceuticals Inc is using all its assets to generate revenue. The ratio fluctuated within a narrow range from March 31, 2020, to March 31, 2023, suggesting relatively consistent performance in asset utilization over this period. However, a substantial increase was noted from March 31, 2023, to December 31, 2023, indicating a significant improvement in the company's overall asset efficiency during that timeframe. The ratio then declined gradually from March 31, 2023, to December 31, 2024, which may indicate a slight decrease in the company's ability to generate revenue from its total assets.

Overall, while the Fixed Asset Turnover ratio showed more volatility in the company's utilization of fixed assets, the Total Asset Turnover ratio displayed a more stable trend in Catalyst Pharmaceuticals Inc's overall asset efficiency over the analyzed period. Further analysis and comparison with industry benchmarks would provide more insights into the company's long-term activity performance.