Harmony Biosciences Holdings (HRMY)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 6.54 | 5.80 | 5.81 | 7.85 | 10.48 |
| Days of sales outstanding (DSO) | days | 42.40 | 49.34 | 47.68 | 49.85 | 60.09 |
| Number of days of payables | days | 12.48 | 19.16 | 5.12 | 1.77 | 7.01 |
| Cash conversion cycle | days | 36.46 | 35.97 | 48.37 | 55.93 | 63.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.54 + 42.40 – 12.48
= 36.46
The cash conversion cycle for Harmony Biosciences Holdings has shown a consistent improvement from 63.57 days as of December 31, 2020, reducing to 55.93 days on December 31, 2021, and further declining to 48.37 days by December 31, 2022. This trend continued with a significant decrease to 35.97 days on December 31, 2023, followed by a slight increase to 36.46 days as of December 31, 2024. Overall, the company has been able to efficiently manage its cash conversion cycle over the years, indicating a positive trend in converting its investments in inventory and receivables into cash.
Peer comparison
Dec 31, 2024