Harmony Biosciences Holdings (HRMY)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	714,734	548,499	419,060	255,101	134,691
Receivables	US$ in thousands	83,033	74,140	54,740	34,843	22,176
Receivables turnover		8.61	7.40	7.66	7.32	6.07

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $714,734K ÷ $83,033K
= 8.61

Based on the data provided for Harmony Biosciences Holdings, the receivables turnover has been steadily increasing over the past five years. The receivables turnover ratio measures how efficiently the company is collecting payments from customers.

In 2020, the receivables turnover ratio stood at 6.07, indicating that the company collected receivables approximately 6.07 times during that year. Subsequently, the ratio improved to 7.32 in 2021, 7.66 in 2022, and 7.40 in 2023. Notably, the highest level was reached in 2024 at 8.61, suggesting that the company became more efficient in collecting payments from its customers.

A higher receivables turnover ratio generally indicates that the company is managing its receivables effectively, promptly converting credit sales into cash. This trend in Harmony Biosciences Holdings' receivables turnover ratio reflects improved efficiency in its receivables management processes over the years, which can positively impact the company's cash flow and overall financial health.