Harmony Biosciences Holdings (HRMY)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	5,363	5,087	4,854	4,090	4,297	3,900	4,208	4,597	4,432	4,805	4,951	4,405	3,823	2,311
Inventory turnover		62.98	61.03	61.18	69.89	62.78	64.86	55.79	47.03	46.47	39.83	34.69

December 31, 2023 calculation

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

The inventory turnover ratio for Harmony Biosciences Holdings Inc has been relatively stable over the past eight quarters, ranging between 13.01 and 22.61. This ratio indicates how efficiently the company is managing its inventory by measuring the number of times inventory is sold and replaced within a given period.

The company's inventory turnover has shown an increasing trend from Q1 2022 to Q4 2023, with a peak of 22.61 in Q4 2023. This suggests that the company is selling and replenishing its inventory at a faster rate, which generally indicates efficient inventory management. A higher inventory turnover ratio implies that the company is effectively managing its inventory levels by minimizing excess stock and reducing carrying costs.

Overall, Harmony Biosciences Holdings Inc's inventory turnover ratios demonstrate a positive trend, indicating effective inventory management practices that are essential for maintaining a healthy balance between sales and inventory levels. However, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's inventory management efficiency.