Supernus Pharmaceuticals Inc (SUPN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 7.40 | 0.00 | 5.11 | 4.45 | 5.33 |
| Receivables turnover | 4.66 | 4.21 | 4.07 | 3.76 | 3.56 |
| Payables turnover | 87.61 | 0.00 | 44.34 | 40.98 | 41.88 |
| Working capital turnover | 1.68 | 2.99 | 14.57 | 1.96 | 1.30 |
The activity ratios of Supernus Pharmaceuticals Inc provide insight into how efficiently the company manages its assets and liabilities to generate sales revenue.
1. Inventory Turnover: This ratio measures how many times a company sells and replaces its inventory during a period. A higher inventory turnover indicates efficient inventory management. From 2020 to 2024, Supernus Pharmaceuticals Inc's inventory turnover fluctuated, peaking in 2024 at 7.40 but decreasing to 0 in 2023, which may suggest issues with inventory management that year.
2. Receivables Turnover: The receivables turnover ratio measures how effectively a company collects on its credit sales. An increasing trend over the years, as seen with Supernus Pharmaceuticals Inc from 3.56 in 2020 to 4.66 in 2024, signals improved efficiency in collecting outstanding receivables.
3. Payables Turnover: This ratio indicates how quickly a company pays its suppliers. Supernus Pharmaceuticals Inc's payables turnover ratio increased consistently from 2020 to 2024, reaching 87.61 in 2024. A higher payables turnover ratio implies that the company is taking longer to pay its bills, which may indicate better cash flow management.
4. Working Capital Turnover: This ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio suggests better utilization of working capital. Supernus Pharmaceuticals Inc's working capital turnover varied over the years, with a significant increase in 2022 to 14.57, indicating more efficient utilization of working capital that year.
In conclusion, analyzing these activity ratios helps assess Supernus Pharmaceuticals Inc's effectiveness in managing its inventory, collecting receivables, paying suppliers, and utilizing working capital to generate sales revenue.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 49.31 | — | 71.48 | 82.04 | 68.52 |
| Days of sales outstanding (DSO) | days | 78.36 | 86.61 | 89.75 | 97.06 | 102.64 |
| Number of days of payables | days | 4.17 | — | 8.23 | 8.91 | 8.72 |
The activity ratios of Supernus Pharmaceuticals Inc provide insights into the efficiency of the company's operations in managing its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand increased from 68.52 days on December 31, 2020, to 82.04 days on December 31, 2021, indicating a longer period of time for the company to sell its inventory.
- In 2022, DOH decreased slightly to 71.48 days, suggesting a potentially more efficient management of inventory compared to the prior year.
- Notably, no data was provided for DOH in 2023, which may indicate a lack of information or a change in reporting practices.
- By December 31, 2024, the days of inventory on hand improved significantly to 49.31 days, possibly reflecting better inventory management practices.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding decreased from 102.64 days on December 31, 2020, to 97.06 days on December 31, 2021, indicating a reduction in the average collection time for accounts receivable.
- The trend continued in 2022 with further improvements as DSO decreased to 89.75 days, suggesting more prompt collection of revenues from sales.
- By December 31, 2024, the days of sales outstanding decreased to 78.36 days, indicating a continued focus on efficient accounts receivable management.
3. Number of Days of Payables:
- The number of days of payables remained relatively stable over the years, with a slight increase from 8.72 days on December 31, 2020, to 8.91 days on December 31, 2021, before decreasing to 8.23 days on December 31, 2022.
- Similar to DOH in 2023, no data was provided for the number of days of payables, which could be due to reporting variations.
- By the end of 2024, the number of days of payables further decreased to 4.17 days, indicating a potentially more aggressive approach to managing payables.
In conclusion, Supernus Pharmaceuticals Inc has shown improvements in inventory management, accounts receivable collection, and accounts payable turnover over the years, reflecting a focus on enhancing operational efficiency. The company's ability to streamline these activities can contribute to overall financial performance and profitability.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 57.32 | 44.90 | 44.36 | 33.03 | 13.24 |
| Total asset turnover | 0.48 | 0.48 | 0.40 | 0.33 | 0.33 |
The fixed asset turnover ratio of Supernus Pharmaceuticals Inc has been on an upward trend over the past five years, increasing from 13.24 in 2020 to 57.32 in 2024. This indicates that the company is generating significantly more revenue relative to its investment in fixed assets, reflecting improved efficiency in utilizing its property, plant, and equipment.
In contrast, the total asset turnover ratio has also shown an increasing trend, rising from 0.33 in 2020 to 0.48 in 2024. This suggests that Supernus Pharmaceuticals Inc is generating more sales in relation to its total assets, which indicates improved efficiency in utilizing all of its assets to generate revenue.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that Supernus Pharmaceuticals Inc has been effectively utilizing its assets to generate revenue over the past five years. This suggests improved operational efficiency and effectiveness in utilizing both fixed and total assets for revenue generation.