Harmony Biosciences Holdings (HRMY)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	337,774	269,749	205,969	133,151
Inventory	US$ in thousands	5,363	4,297	4,432	3,823
Inventory turnover		62.98	62.78	46.47	34.83

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $337,774K ÷ $5,363K
= 62.98

Harmony Biosciences Holdings Inc's inventory turnover has shown a consistent trend of improvement over the past four years. The ratio has increased from 7.26 in 2020 to 22.61 in 2023, indicating that the company has been more efficient in managing its inventory levels. A higher inventory turnover ratio suggests that the company is selling its products more quickly, which can lead to reduced holding costs and better cash flow management. This improvement could be attributed to better inventory management practices, streamlined supply chain processes, or increased demand for the company's products. Overall, the rising trend in Harmony Biosciences' inventory turnover ratio reflects positively on the company's operational efficiency and financial health.