Harmony Biosciences Holdings (HRMY)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	714,734	548,499	419,060	255,101	134,691
Property, plant and equipment	US$ in thousands	1,257	371	573	820	938
Fixed asset turnover		568.60	1,478.43	731.34	311.10	143.59

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $714,734K ÷ $1,257K
= 568.60

Harmony Biosciences Holdings has shown a significant improvement in its fixed asset turnover over the past five years. The fixed asset turnover ratio measures how effectively a company generates revenue from its fixed assets.

In December 2020, the fixed asset turnover was 143.59, indicating that the company generated $143.59 in revenue for every dollar invested in fixed assets. This ratio increased substantially to 311.10 by December 2021, demonstrating an enhanced efficiency in utilizing its fixed assets to generate revenue.

The trend continued to improve significantly in the following years, with the fixed asset turnover reaching 731.34 by December 2022 and further soaring to 1,478.43 by December 2023. These values suggest that Harmony Biosciences Holdings was able to generate revenue at a much higher rate relative to its investment in fixed assets during these periods.

However, there was a noticeable decline in fixed asset turnover to 568.60 by December 2024. While this value is still relatively high compared to the initial years, the decrease might indicate a shift in the company's asset utilization strategy or changes in its business operations.

Overall, Harmony Biosciences Holdings has showcased a remarkable improvement in its fixed asset turnover over the years, reflecting efficient management of its fixed assets to drive revenue growth. Continued monitoring of this ratio will be essential to assess the company's ongoing operational efficiency and financial performance.