Harmony Biosciences Holdings (HRMY)

Fixed asset turnover

		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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Revenue (ttm)	US$ in thousands	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	371	428	572	470	573	680	695	748	820	937	944	842	938	1,038
Fixed asset turnover		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, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $548,499K ÷ $371K
= 1,478.43

Fixed asset turnover measures how efficiently a company is generating revenue from its investment in fixed assets. Harmony Biosciences Holdings Inc's fixed asset turnover has shown a general increasing trend over the past eight quarters, indicating improved efficiency in utilizing its fixed assets to generate sales. The ratio has significantly increased from 442.62 in Q1 2022 to 1,568.79 in Q4 2023, reflecting a substantial jump in revenue generated per dollar invested in fixed assets.

This improvement suggests that Harmony Biosciences Holdings Inc is effectively managing its fixed assets to support revenue growth. A high fixed asset turnover ratio indicates that the company is efficiently using its fixed assets to generate sales, which is a positive signal for investors and creditors. Overall, the increasing trend in fixed asset turnover for Harmony Biosciences Holdings Inc indicates operational efficiency and effective asset utilization over the analyzed period.