Harmony Biosciences Holdings (HRMY)
Activity ratios
Short-term
Turnover ratios
| 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 | 62.98 | 61.03 | 61.18 | 69.89 | 62.78 | 64.86 | 55.79 | 47.03 | 46.47 | 39.83 | 34.69 |
| Receivables turnover | 7.40 | 7.55 | 7.47 | 8.59 | 7.66 | 6.96 | 6.42 | 7.63 | 7.72 | 7.13 | 7.48 |
| Payables turnover | 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 | 1.91 | 1.45 | 1.31 | 1.36 | 1.30 | 1.39 | 1.25 | 1.30 | 1.17 | 1.23 | 1.39 |
Harmony Biosciences Holdings Inc's inventory turnover has been consistently high over the past eight quarters, ranging from 19.08 to 22.61. This indicates that the company efficiently manages its inventory by quickly selling and replacing its goods. The receivables turnover also demonstrates a stable performance, with values ranging from 7.28 to 8.97, showing that the company efficiently collects payments from its customers.
On the other hand, there is significant variability in the payables turnover ratio, with a range from 6.84 to 22.05. This suggests fluctuations in the company's payment practices to its suppliers. A lower value indicates a longer time taken to pay suppliers, while a higher value shows quicker payments.
The working capital turnover ratio has been relatively stable, varying from 1.38 to 2.03. This ratio reflects how efficiently Harmony Biosciences is using its working capital to generate revenue. A higher value suggests that the company is effectively employing its capital to generate sales.
Overall, these activity ratios indicate that Harmony Biosciences Holdings Inc has efficient inventory and receivables management practices, although its payment practices to suppliers exhibit some irregularities. The stable working capital turnover ratio suggests consistent performance in utilizing its working capital to generate revenue.
Average number of days
| 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 | 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 | 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 | 19.16 | 7.69 | 8.07 | 8.19 | 5.12 | 14.50 | 10.36 | 11.66 | 1.77 | 7.97 | 4.26 |
The activity ratios of Harmony Biosciences Holdings Inc provide insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.
- Days of Inventory on Hand (DOH) has been gradually decreasing over the quarters, indicating that the company is efficiently managing its inventory levels. A lower DOH implies that the company is selling its inventory more quickly, which can lead to lower storage costs and better cash flow.
- Days of Sales Outstanding (DSO) has fluctuated slightly but has generally been within the same range over the quarters. This ratio measures how long it takes for the company to collect payments from its customers. A consistent DSO suggests that the company has steady and efficient accounts receivable management practices.
- Number of Days of Payables shows some variability over the quarters, with a significant increase in Q4 2023 compared to Q3 2023. This ratio reflects how long the company takes to pay its suppliers. A longer payment period can indicate favorable credit terms with suppliers, but it is essential to strike a balance between maximizing payment terms and maintaining good relationships with suppliers.
In summary, Harmony Biosciences Holdings Inc has been effectively managing its inventory levels, maintaining a steady collection of receivables, and managing its payables. Monitoring these activity ratios can help the company improve its working capital management and overall operational efficiency.
Long-term
| 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 | 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 | 0.68 | 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 measures how efficiently a company is utilizing its fixed assets to generate sales. The trend of Harmony Biosciences Holdings Inc's fixed asset turnover ratio has been increasing over the past quarters, indicating a significant improvement in efficiency in utilizing its fixed assets to generate revenue. As of Q4 2023, the fixed asset turnover ratio stands at a remarkable 1,568.79, signifying that the company generates $1,568.79 in revenue for every dollar invested in fixed assets.
On the other hand, the total asset turnover ratio reflects how effectively a company is using all of its assets to generate sales. The trend for Harmony Biosciences Holdings Inc's total asset turnover ratio has been relatively stable with fluctuations between 0.65 and 0.72 over the past eight quarters. As of Q4 2023, the total asset turnover ratio is at 0.72, suggesting that the company generates $0.72 in revenue for every dollar of total assets it possesses.
Overall, the improvement in the fixed asset turnover ratio indicates that Harmony Biosciences Holdings Inc has been successful in optimizing the utilization of its fixed assets to drive sales growth. However, it is essential for the company to focus on maintaining or improving its total asset turnover ratio to ensure efficient utilization of all its assets in generating revenue.