Harmony Biosciences Holdings (HRMY)

Receivables 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
Revenue (ttm)	US$ in thousands	548,499	507,747	476,532	451,378	419,060	383,158	319,980	290,957	268,890	236,824	233,336
Receivables	US$ in thousands	74,140	67,264	63,812	52,575	54,740	55,065	49,822	38,133	34,843	33,206	31,196	23,615	22,176	16,326
Receivables turnover		7.40	7.55	7.47	8.59	7.66	6.96	6.42	7.63	7.72	7.13	7.48

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $548,499K ÷ $74,140K
= 7.40

Harmony Biosciences Holdings Inc's receivables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 7.28 to a high of 8.97. The average receivables turnover ratio over this period is approximately 7.99.

A higher receivables turnover ratio indicates that the company is able to collect its accounts receivable more quickly, which can be a positive sign of efficient credit management and strong customer collections. Conversely, a lower ratio may suggest potential issues with collecting payments from customers in a timely manner.

In the latest quarter, Q4 2023, the receivables turnover ratio was 7.85, which is slightly below the average over the past eight quarters. This may warrant further investigation to determine the underlying reasons for the deviation from the historical trend. Overall, it is important for Harmony Biosciences Holdings Inc to monitor its receivables turnover ratio consistently to ensure efficient management of accounts receivable and cash flow.