Harmony Biosciences Holdings (HRMY)

Payables 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
Payables	US$ in thousands	13,744	10,532	22,683	15,144	17,730	6,539	6,563	6,414	3,786	10,049	6,661	6,904	1,001	4,179	2,006
Payables turnover		29.24	36.93	16.24	23.29	19.05	47.48	45.25	44.57	71.25	25.17	35.24	31.31	205.76	45.80	85.61

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $401,928K ÷ $13,744K
= 29.24

The payables turnover ratio is used to assess how efficiently a company manages its accounts payable. A higher payables turnover indicates that the company is paying its suppliers more frequently, which could suggest strong cash flow management and favorable supplier relationships.

Analyzing the payables turnover data provided for Harmony Biosciences Holdings, we observe fluctuations in the ratio over the periods mentioned. The payables turnover ratio ranged from a high of 205.76 on December 31, 2021, to a low of 16.24 on June 30, 2024. This wide range indicates variations in the company's ability to effectively manage its accounts payable during these periods.

It is important to note that a very high payables turnover ratio could signal that the company is paying its suppliers too quickly, which may strain its cash flow. Conversely, a low payables turnover may indicate that the company is holding onto its payables longer, potentially causing strain on supplier relationships.

In summary, analyzing Harmony Biosciences Holdings' payables turnover ratio shows fluctuations over time, highlighting changes in the company's accounts payable management efficiency. Further investigation into the reasons behind these fluctuations and comparison with industry benchmarks could provide deeper insights into the company's financial health and operational effectiveness.