Harmony Biosciences Holdings (HRMY)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		55.84	62.98	62.78	46.47	34.83
DOH	days	6.54	5.80	5.81	7.85	10.48

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 55.84
= 6.54

The days of inventory on hand (DOH) for Harmony Biosciences Holdings decreased from 10.48 days as of December 31, 2020, to 7.85 days as of December 31, 2021. This downward trend continued with further reductions to 5.81 days as of December 31, 2022, and 5.80 days as of December 31, 2023. However, there was a slight increase to 6.54 days as of December 31, 2024.

A lower DOH indicates that the company is managing its inventory more efficiently, potentially due to improved inventory management processes, better demand forecasting, or a streamlined supply chain. This could lead to lower holding costs, reduced risk of obsolete inventory, and improved cash flow.

The fluctuation in DOH over the years suggests that Harmony Biosciences Holdings may be actively adjusting its inventory levels to optimize its working capital and operational efficiency. Further monitoring of this metric can provide insights into the company's inventory management strategies and operational performance.