Catalyst Pharmaceuticals Inc (CPRX)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 103.60 | 67.55 | 72.22 | 131.26 | 99.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 103.60 | 67.55 | 72.22 | 131.26 | 99.63 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 103.60 + — – —
= 103.60
The cash conversion cycle of Catalyst Pharmaceuticals Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was 99.63 days, indicating that it took approximately 99.63 days for the company to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, the cash conversion cycle increased to 131.26 days, suggesting a prolonged period for Catalyst Pharmaceuticals Inc to convert its investments into cash. However, the trend reversed by December 31, 2022, with a significant reduction in the cash conversion cycle to 72.22 days, indicating an improvement in the efficiency of the company's working capital management.
Further improvement was observed by December 31, 2023, as the cash conversion cycle decreased to 67.55 days, reflecting a more efficient conversion of investments into cash. However, there was a slight increase by December 31, 2024, with the cash conversion cycle rising to 103.60 days, although it remained below the levels seen in 2020 and 2021.
Overall, the analysis of Catalyst Pharmaceuticals Inc's cash conversion cycle suggests varying efficiency in managing its working capital over the five-year period, with fluctuations in the time taken to convert investments into cash. Further monitoring of the trend in the cash conversion cycle is recommended to assess the company's ongoing working capital management practices.
Peer comparison
Dec 31, 2024