Harmony Biosciences Holdings (HRMY)

Days of inventory on hand (DOH)

		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
Inventory turnover		55.84	56.25	65.26	60.23	62.98	61.03	61.18	69.89	62.78	64.86	55.79	47.03	46.47	39.83	34.69
DOH	days	6.54	6.49	5.59	6.06	5.80	5.98	5.97	5.22	5.81	5.63	6.54	7.76	7.85	9.16	10.52

December 31, 2024 calculation

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

The days of inventory on hand for Harmony Biosciences Holdings have been showing a decreasing trend over the past few years, indicating efficiency in managing inventory levels. The company managed to reduce its days of inventory on hand from 10.52 days as of June 30, 2021, to 6.54 days as of June 30, 2022. This reduction suggests that Harmony Biosciences has been improving its inventory management, possibly through better forecasting, demand planning, or supply chain optimization.

Despite some fluctuations, the trend generally continues downwards, with the metric reaching its lowest point of 5.22 days as of March 31, 2023. A lower days of inventory on hand value implies that Harmony Biosciences is selling products quickly or holding lower levels of inventory, which can lead to cost savings, improved liquidity, and a more agile supply chain.

However, there are slight increases in days of inventory on hand in some quarters, such as the uptick to 6.49 days as of September 30, 2024, and 6.54 days as of December 31, 2024. These increases, while modest, might indicate temporary shifts in production, sales patterns, or supply chain disruptions that could impact inventory management efficiency.

Overall, Harmony Biosciences Holdings seems to be effectively managing its inventory levels, but monitoring fluctuations in the days of inventory on hand metric can provide insights into the company's operational performance and efficiency in the future.