Catalyst Pharmaceuticals Inc (CPRX)

Receivables 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
Revenue (ttm)	US$ in thousands	398,204	348,393	302,949	256,480	214,203	191,755	170,465	153,717	140,833	133,539	126,902	120,142	119,073	118,181	119,761	118,994	102,306	72,683	41,786	12,948
Receivables	US$ in thousands	53,514	48,049	42,796	33,402	10,439	9,337	9,587	10,552	6,619	6,625	6,292	5,601	5,987	5,872	6,762	6,919	10,537	10,095	10,376	7,251
Receivables turnover		7.44	7.25	7.08	7.68	20.52	20.54	17.78	14.57	21.28	20.16	20.17	21.45	19.89	20.13	17.71	17.20	9.71	7.20	4.03	1.79

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $398,204K ÷ $53,514K
= 7.44

The receivables turnover ratio for Catalyst Pharmaceuticals Inc has varied over the past few years. It measures the efficiency with which the company collects outstanding receivables from its customers. A higher receivables turnover ratio indicates a more efficient collection process.

From the data provided, we can see that the receivables turnover ratio has fluctuated significantly over the periods analyzed. In the recent quarters, the ratio has been relatively stable, with values ranging from 7.08 to 7.68. This suggests that the company has been maintaining a consistent pace in collecting outstanding receivables during these periods.

However, in comparison to the previous years, particularly in 2020 and 2019, there was a significant increase in the receivables turnover ratio. This spike in the ratio in 2020, reaching as high as 21.28, may indicate a more aggressive approach to collecting receivables or improved efficiencies in the company's collections processes during that period.

On the contrary, the low receivables turnover ratio observed in 2019, dropping to as low as 1.79, could be a cause for concern. It suggests that the company may have faced challenges in collecting outstanding receivables efficiently during that particular period.

Overall, continuous monitoring of the receivables turnover ratio is essential for Catalyst Pharmaceuticals Inc to ensure effective management of its accounts receivable and timely collection from customers.