Harmony Biosciences Holdings (HRMY)

Days of sales outstanding (DSO)

		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
Receivables turnover		8.55	8.25	7.58	7.34	7.40	7.55	7.47	8.59	7.66	6.96	6.42	7.63	7.72	7.13	7.48
DSO	days	42.67	44.23	48.18	49.72	49.34	48.35	48.88	42.51	47.68	52.46	56.83	47.84	47.30	51.18	48.80

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.55
= 42.67

Days Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO value is generally preferred as it signifies that the company is collecting payments more quickly, which can improve cash flow and liquidity.

Analyzing the DSO trend for Harmony Biosciences Holdings from June 30, 2021, to December 31, 2024, shows some fluctuations in the collection period. The DSO values range from a low of 42.51 days on March 31, 2023, to a high of 56.83 days on June 30, 2022.

Overall, the trend indicates that the company has been relatively effective in managing its receivables, as the DSO values have generally remained within a reasonable range. However, there are periods, such as June 30, 2022, and September 30, 2022, where the DSO increased significantly, which may suggest potential issues in collections efficiency during those periods.

It is important for Harmony Biosciences Holdings to closely monitor its DSO and possibly implement strategies to improve collections efficiency during periods of higher DSO, as this can impact cash flow and working capital management. Furthermore, consistent monitoring of DSO trend can help the company better understand its credit policies, customer payment behaviors, and overall financial health.