Harmony Biosciences Holdings (HRMY)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 401,928 | 337,774 | 269,749 | 205,969 | 133,151 |
| Inventory | US$ in thousands | 7,198 | 5,363 | 4,297 | 4,432 | 3,823 |
| Inventory turnover | 55.84 | 62.98 | 62.78 | 46.47 | 34.83 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $401,928K ÷ $7,198K
= 55.84
Harmony Biosciences Holdings has shown a consistent improvement in its inventory turnover over the years, reflecting efficient management of inventory levels. The inventory turnover ratio has increased from 34.83 in December 31, 2020, to 55.84 in December 31, 2024. This signifies that the company is selling its inventory more frequently within a given period.
The trend indicates that Harmony Biosciences Holdings is becoming more effective in managing its inventory levels, possibly due to improved forecasting, production, and sales strategies. A higher inventory turnover ratio suggests that the company is able to quickly convert its inventory into sales, reducing the risk of obsolescence and holding costs.
The significant increase in inventory turnover from 2020 to 2024 reflects positively on the company's operational efficiency and could lead to improved liquidity and profitability in the long term. Overall, the increasing trend in inventory turnover is a positive indicator of Harmony Biosciences Holdings' inventory management performance.
Peer comparison
Dec 31, 2024