Harmony Biosciences Holdings (HRMY)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	710,199	672,548	630,000	585,184	548,499	507,747	476,532	451,378	419,060	383,158	319,980	290,957	268,890	236,824	233,336
Property, plant and equipment	US$ in thousands	1,257	750	754	213	371	428	572	470	573	680	695	748	820	937	944
Fixed asset turnover		565.00	896.73	835.54	2,747.34	1,478.43	1,186.32	833.10	960.38	731.34	563.47	460.40	388.98	327.91	252.75	247.18

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $710,199K ÷ $1,257K
= 565.00

The fixed asset turnover ratio measures a company's ability to generate sales from its fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets efficiently to generate revenues.

Analyzing the fixed asset turnover trends for Harmony Biosciences Holdings from June 30, 2021, to December 31, 2024, we observe a significant increase in the ratio over time. The ratio has shown a consistent pattern of growth quarter over quarter, starting at 247.18 on June 30, 2021, and reaching a peak of 2,747.34 on March 31, 2024.

The trend indicates that Harmony Biosciences Holdings has been effectively leveraging its fixed assets to drive revenue generation and sales growth. However, it is important to note that there was a notable decrease in the fixed asset turnover ratio from March 31, 2024, to June 30, 2024, where the ratio dropped to 835.54.

This decrease may signal a potential slowdown in the company's efficiency in utilizing its fixed assets to generate sales. Further analysis and investigation into the reasons behind this decline in the fixed asset turnover ratio would be necessary to fully understand the implications for Harmony Biosciences Holdings' operational performance and financial health.