Harmony Biosciences Holdings (HRMY)

Working capital 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
Total current assets US$ in thousands 579,252 451,070 400,285 284,439 262,891
Total current liabilities US$ in thousands 175,082 163,781 78,884 53,775 134,539
Working capital turnover 1.77 1.91 1.30 1.11 1.05

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $714,734K ÷ ($579,252K – $175,082K)
= 1.77

The working capital turnover of Harmony Biosciences Holdings has shown a consistent upward trend over the past five years. Starting at 1.05 in December 31, 2020, the ratio has steadily increased, reaching 1.77 by December 31, 2024. This indicates that the company has been more efficient in utilizing its working capital to generate sales revenue over the years. A higher turnover ratio often signifies better liquidity management and operational efficiency. The significant improvement in working capital turnover from 2020 to 2024 suggests that Harmony Biosciences Holdings has been effectively managing its working capital to support its business operations and growth.