Harmony Biosciences Holdings (HRMY)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	6.54	6.49	5.59	6.06	5.80	5.98	5.97	5.22	5.81	5.63	6.54	7.76	7.85	9.16	10.52
Days of sales outstanding (DSO)	days	42.67	44.23	48.18	49.72	49.34	48.35	48.88	42.51	47.68	52.46	56.83	47.84	47.30	51.18	48.80
Number of days of payables	days	12.48	9.88	22.48	15.67	19.16	7.69	8.07	8.19	5.12	14.50	10.36	11.66	1.77	7.97	4.26
Cash conversion cycle	days	36.73	40.84	31.29	40.11	35.97	46.65	46.78	39.55	48.37	43.58	53.02	43.94	53.38	52.37	55.06

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.54 + 42.67 – 12.48
= 36.73

The cash conversion cycle of Harmony Biosciences Holdings has shown fluctuation over the reporting periods. Starting at 55.06 days on June 30, 2021, the cycle decreased to 43.94 days on March 31, 2022, reflecting an improvement in managing cash flow from operations, inventory turnover, and accounts receivable collection. The cycle lengthened again in the subsequent quarters before decreasing to 35.97 days on December 31, 2023. The trend continued with a further reduction to 31.29 days on June 30, 2024, indicating more efficient management of working capital and a faster conversion of inventory and receivables into cash. Overall, the company has made notable progress in optimizing its cash conversion cycle, which can positively impact its liquidity and overall financial health.