Harmony Biosciences Holdings (HRMY)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 8.55 8.25 7.58 7.34 7.40 7.55 7.47 8.59 7.66 6.96 6.42 7.63 7.72 7.13 7.48
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
Working capital turnover 1.76 1.86 2.02 1.80 1.91 1.45 1.31 1.36 1.30 1.39 1.25 1.30 1.17 1.23 1.39

The activity ratios of Harmony Biosciences Holdings show the efficiency of the company in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover: Harmony Biosciences has shown a consistent improvement in inventory turnover over the years, indicating that inventory is moving faster. The ratio has increased steadily from 34.69 in June 2021 to 55.84 in December 2024, peaking at 69.89 in March 2023.

2. Receivables Turnover: The company has maintained a relatively stable receivables turnover ratio over the period. The ratio has fluctuated between 6.42 and 8.59, with a slight increase towards the end of the period, indicating an efficient collection of receivables.

3. Payables Turnover: Harmony Biosciences has shown variability in its payables turnover ratio. The ratio was high in December 2021 at 205.76, significantly dropping in the following quarters before stabilizing around 30-50 range. This indicates that the company's payment terms to its suppliers have been fluctuating.

4. Working Capital Turnover: The company has shown an improvement in the efficiency of its working capital turnover, with the ratio increasing from 1.39 in June 2021 to 1.76 in December 2024. This suggests that the company is generating more revenue from its working capital over time.

Overall, Harmony Biosciences Holdings demonstrates a good efficiency in managing its inventory, receivables, payables, and working capital, with a focus on improving turnover ratios over the years.

Average number of days

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
Days of inventory on hand (DOH) days 6.54 6.49 5.59 6.06 5.80 5.98 5.97 5.22 5.81 5.63 6.54 7.76 7.85 9.16 10.52
Days of sales outstanding (DSO) days 42.67 44.23 48.18 49.72 49.34 48.35 48.88 42.51 47.68 52.46 56.83 47.84 47.30 51.18 48.80
Number of days of payables days 12.48 9.88 22.48 15.67 19.16 7.69 8.07 8.19 5.12 14.50 10.36 11.66 1.77 7.97 4.26

The Days of Inventory on Hand (DOH) for Harmony Biosciences Holdings have shown a decreasing trend over the years, from 10.52 days on June 30, 2021, to 6.54 days on June 30, 2022, and then hovering around 5-6 days in the subsequent periods. This indicates that the company is managing its inventory efficiently by reducing the number of days it takes to sell its inventory.

On the other hand, the Days of Sales Outstanding (DSO) have displayed some fluctuations but generally remained within a range. There was a slight increase in DSO from June 2021 to June 2022, and then it decreased to 42.67 days on December 31, 2024. This suggests that the company's accounts receivable turnover improved over the years, with a shorter time taken to collect payments from customers.

In terms of the Number of Days of Payables, Harmony Biosciences Holdings experienced fluctuations in the time it takes to pay its liabilities. There was a significant increase in payables days from June 2023 to June 2024, reaching 22.48 days, before slightly decreasing to 12.48 days on December 31, 2024. This indicates that the company may be taking longer to settle its payables, which could impact cash flow management.

Overall, the company seems to be efficiently managing its inventory and collections from customers, but it may need to focus on optimizing its payables turnover to ensure a balanced working capital cycle.

Long-term

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
Fixed asset turnover 565.00 896.73 835.54 2,747.34 1,478.43 1,186.32 833.10 960.38 731.34 563.47 460.40 388.98 327.91 252.75 247.18
Total asset turnover 0.71 0.72 0.73 0.69 0.68 0.65 0.63 0.63 0.62 0.60 0.63 0.63 0.62 0.61 0.65

The Fixed Asset Turnover ratio for Harmony Biosciences Holdings has shown a significant increase from June 2021 to December 2023. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales, with a higher ratio indicating better efficiency. The ratio reached its peak at 1,478.43 on December 31, 2023, showcasing a substantial improvement in asset utilization.

On the other hand, the Total Asset Turnover ratio, which reflects overall asset utilization efficiency, remained relatively stable over the same period. It ranged between 0.60 to 0.73, indicating that the company was generating sales in line with its total asset base. A ratio above 1 would suggest that the company is generating more revenue per dollar of assets owned.

It's worth noting that the Fixed Asset Turnover ratio showed a significant decline from March 2024 to December 2024, dropping from 2,747.34 to 565.00. This could indicate a potential decrease in the efficiency of utilizing fixed assets during this period, which warrants further investigation to identify the underlying factors contributing to this trend.