Harmony Biosciences Holdings (HRMY)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	548,499	419,060	255,101	134,691
Total current assets	US$ in thousands	451,070	400,285	284,439	262,891
Total current liabilities	US$ in thousands	163,781	78,884	53,775	134,539
Working capital turnover		1.91	1.30	1.11	1.05

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $548,499K ÷ ($451,070K – $163,781K)
= 1.91

Harmony Biosciences Holdings Inc's working capital turnover has shown a positive trend over the past four years, increasing from 1.24 in 2020 to 2.03 in 2023. This indicates that the company is becoming more efficient in its utilization of working capital to generate revenue. A higher working capital turnover ratio suggests that the company is able to effectively manage its current assets and liabilities to support its operations and sales. This improvement reflects positively on the company's liquidity and operational efficiency, signaling potential strengths in its financial management.