Catalyst Pharmaceuticals Inc (CPRX)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 491,734 460,482 434,475 411,347 398,204 348,393 302,949 256,480 214,203 191,755 170,465 153,717 140,833 133,539 126,902 120,142 119,073 118,181 119,761 118,994
Total current assets US$ in thousands 623,609 538,998 474,429 404,602 219,329 192,017 240,968 198,911 320,797 276,310 242,558 221,191 210,106 192,795 176,305 161,533 159,244 143,342 131,164 116,944
Total current liabilities US$ in thousands 120,678 105,395 92,318 79,566 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
Working capital turnover 0.98 1.06 1.14 1.27 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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $491,734K ÷ ($623,609K – $120,678K)
= 0.98

The working capital turnover ratio of Catalyst Pharmaceuticals Inc has fluctuated over the analyzed period. The ratio indicates how effectively the company is using its working capital to generate revenue. A higher ratio suggests efficient utilization of working capital, while a lower ratio may indicate inefficiency or excess working capital.

The working capital turnover ratio declined from 1.20 on March 31, 2020, to 0.78 on December 31, 2021. This decrease could suggest a decrease in sales relative to the working capital employed during this period. However, it is worth noting that there was a significant improvement in the ratio during the first quarter of 2023, jumping to 1.80, before gradually declining again.

Overall, the trend in the working capital turnover ratio of Catalyst Pharmaceuticals Inc indicates some fluctuations, with periods of both efficiency and inefficiency in utilizing working capital to generate revenue. Further analysis of the company's financial performance and operational efficiency would be needed to better understand the underlying factors driving these fluctuations.