Catalyst Pharmaceuticals Inc (CPRX)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	398,204	214,203	140,833	119,073	102,306
Total assets	US$ in thousands	470,114	375,630	237,788	192,354	112,376
Total asset turnover		0.85	0.57	0.59	0.62	0.91

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $398,204K ÷ $470,114K
= 0.85

The total asset turnover ratio for Catalyst Pharmaceuticals Inc has fluctuated over the past five years, ranging from a low of 0.57 in 2022 to a high of 0.91 in 2019. This ratio measures the efficiency with which the company generates revenue relative to its total assets. A total asset turnover ratio of less than 1 indicates that the company is not generating enough revenue in relation to its assets.

The increase in total asset turnover from 2022 to 2023, going from 0.57 to 0.85, suggests that the company has improved its ability to generate revenue from its assets. However, it is still below the 2019 level, indicating that there may be room for further enhancement in asset utilization efficiency.

It is important for the company to continue monitoring and improving its total asset turnover ratio to ensure optimal utilization of its assets and maximize revenue generation. This could involve streamlining operations, increasing sales, or more effectively managing inventory and receivables.