Catalyst Pharmaceuticals Inc (CPRX)

Working capital 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 current assets	US$ in thousands	219,329	320,806	210,106	159,244	111,364
Total current liabilities	US$ in thousands	76,063	57,588	27,063	22,756	24,099
Working capital turnover		2.78	0.81	0.77	0.87	1.17

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $398,204K ÷ ($219,329K – $76,063K)
= 2.78

Catalyst Pharmaceuticals Inc's working capital turnover has fluctuated over the past five years, with a notable increase from 0.81 in 2019 to 2.78 in 2023. This indicates that the company has been able to more efficiently utilize its working capital to generate sales revenue in 2023 compared to previous years. A higher working capital turnover ratio typically suggests that the company is managing its working capital effectively to support its operations and sales activities. However, further analysis of the company's working capital management practices and industry benchmarks would provide more insights into the efficiency of Catalyst Pharmaceuticals Inc's operations.