Catalyst Pharmaceuticals Inc (CPRX)

Working capital 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
Total current assets US$ in thousands 219,329 192,017 240,968 198,911 320,806 276,310 242,558 221,191 210,106 192,795 176,305 161,533 159,244 143,342 131,164 116,944 111,364 90,579 72,056 54,862
Total current liabilities US$ in thousands 76,063 57,806 52,503 56,709 57,588 44,681 22,488 22,938 27,063 20,614 16,135 14,436 22,756 18,232 20,210 17,636 24,099 17,982 14,152 9,026
Working capital turnover 2.78 2.60 1.61 1.80 0.81 0.83 0.77 0.78 0.77 0.78 0.79 0.82 0.87 0.94 1.08 1.20 1.17 1.00 0.72 0.28

December 31, 2023 calculation

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

The working capital turnover for Catalyst Pharmaceuticals Inc has shown fluctuations over the periods analyzed. The metric indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio signifies more effective management of working capital.

Between December 2019 and June 2020, the working capital turnover was relatively low, indicating that the company was generating less revenue per unit of working capital invested. However, from March 2020 onwards, there was a noticeable improvement in the ratio, with a consistent upward trend until December 2022.

The period between December 2022 and June 2023 saw a decline in the working capital turnover ratio, which may suggest less efficient utilization of working capital during that timeframe. However, starting from September 2023, there was a rebound in the ratio, indicating a potential improvement in the company's working capital efficiency.

Overall, the working capital turnover ratio for Catalyst Pharmaceuticals Inc has displayed variability, likely influenced by changes in sales revenue and working capital management practices. It is essential for the company to monitor and optimize this metric to ensure efficient utilization of its resources in driving revenue growth.