Harmony Biosciences Holdings (HRMY)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	710,199	672,548	630,000	585,184	548,499	507,747	476,532	451,378	419,060	383,158	319,980	290,957	268,890	236,824	233,336
Total current assets	US$ in thousands	579,252	522,405	458,344	479,503	451,070	462,998	455,641	418,087	400,285	382,082	322,702	280,257	284,439	240,691	204,714
Total current liabilities	US$ in thousands	175,082	161,279	146,582	154,253	163,781	112,408	93,045	85,363	78,884	107,357	65,764	56,528	53,775	47,623	36,595
Working capital turnover		1.76	1.86	2.02	1.80	1.91	1.45	1.31	1.36	1.30	1.39	1.25	1.30	1.17	1.23	1.39

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $710,199K ÷ ($579,252K – $175,082K)
= 1.76

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

Analyzing the working capital turnover of Harmony Biosciences Holdings over the specified periods shows fluctuations in the ratio.

From June 30, 2021, to March 31, 2022, the ratio ranged between 1.17 and 1.39, indicating moderate efficiency in utilizing working capital to generate sales.

There was a slight increase in efficiency by June 30, 2022, with a ratio of 1.25. Subsequently, the ratio fluctuated between 1.25 and 1.45 until December 31, 2023.

By the end of December 31, 2023, there was a notable increase in efficiency, with a working capital turnover ratio of 1.91, suggesting improved management of working capital to drive sales.

This trend continued positively, with the ratio peaking at 2.02 on June 30, 2024, before slightly decreasing to 1.76 by December 31, 2024.

Overall, the working capital turnover ratio of Harmony Biosciences Holdings demonstrated varying levels of efficiency in utilizing working capital to generate sales revenue during the specified periods, with periods of improvement noted in 2023 and 2024.