Harmony Biosciences Holdings (HRMY)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.61 | 7.40 | 7.66 | 7.32 | 6.07 | |
| DSO | days | 42.40 | 49.34 | 47.68 | 49.85 | 60.09 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.61
= 42.40
Calculating the days of sales outstanding (DSO) for Harmony Biosciences Holdings, we observe a declining trend in the DSO metric over the past five years.
As of December 31, 2020, the company had a DSO of 60.09 days, which decreased to 49.85 days by December 31, 2021. This downward trend continued with further reductions to 47.68 days by December 31, 2022, 49.34 days by December 31, 2023, and finally reaching 42.40 days by December 31, 2024.
A decreasing DSO implies that Harmony Biosciences Holdings is collecting its accounts receivable more efficiently over time. A lower DSO suggests that the company is converting its credit sales into cash at a faster rate, which may indicate strong customer relationships, effective credit policies, or improved collection processes.
Overall, the downward trend in DSO for Harmony Biosciences Holdings indicates a positive trend in managing its accounts receivable and improving its liquidity position. However, it would be advisable to monitor this ratio in the future to ensure continued efficiency in cash collection processes.
Peer comparison
Dec 31, 2024