Harmony Biosciences Holdings (HRMY)

Inventory 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
Cost of revenue (ttm) US$ in thousands 401,928 388,963 368,283 352,753 337,774 310,467 296,964 285,863 269,749 252,959 234,753 216,188 205,968 191,388 171,741
Inventory US$ in thousands 7,198 6,915 5,643 5,857 5,363 5,087 4,854 4,090 4,297 3,900 4,208 4,597 4,432 4,805 4,951
Inventory turnover 55.84 56.25 65.26 60.23 62.98 61.03 61.18 69.89 62.78 64.86 55.79 47.03 46.47 39.83 34.69

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $401,928K ÷ $7,198K
= 55.84

Harmony Biosciences Holdings' inventory turnover has exhibited a general increasing trend over the analyzed period, indicating a more efficient management of inventory. The ratio increased from 34.69 on June 30, 2021, to 55.84 on December 31, 2024, with some fluctuations in between. This suggests that the company has been successful in selling its inventory more frequently during the period.

A higher inventory turnover indicates that the company is able to sell its products more quickly, which can lead to lower carrying costs and potential obsolescence risks. The notable increase in inventory turnover from June 30, 2021, to December 31, 2024, reflects a more streamlined inventory management process within the company.

However, it is essential to consider industry benchmarks and compare Harmony Biosciences Holdings' inventory turnover to its industry peers for a more accurate assessment of its efficiency in managing inventory. Overall, the increasing trend in inventory turnover for Harmony Biosciences Holdings is a positive indicator of the company's operational efficiency and effectiveness in managing its inventory levels.