Harmony Biosciences Holdings (HRMY)

Cash ratio

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
Cash and cash equivalents US$ in thousands 453,001 387,367 317,296 332,981 311,660 324,603 317,415 287,962 243,784 261,343 236,533 224,499 234,309 189,704 159,686
Short-term investments US$ in thousands 14,185 23,109 29,614 39,369 41,800 46,071 53,568 55,916 79,331 46,420 17,638
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
Cash ratio 2.67 2.55 2.37 2.41 2.16 3.30 3.99 4.03 4.10 2.87 3.86 3.97 4.36 3.98 4.36

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($453,001K + $14,185K) ÷ $175,082K
= 2.67

The cash ratio of Harmony Biosciences Holdings has shown fluctuations over the period from June 30, 2021, to December 31, 2024. The cash ratio measures a company's ability to cover its short-term obligations with its most liquid assets, cash, and cash equivalents.

The trend in Harmony Biosciences Holdings' cash ratio indicates that the company had a strong ability to cover its short-term liabilities with its cash and cash equivalents, starting at 4.36 on June 30, 2021. The ratio slightly decreased to 3.98 on September 30, 2021, before rising again to 4.36 on December 31, 2021.

From March 31, 2022, to September 30, 2022, the cash ratio declined gradually from 3.97 to 2.87, suggesting a potentially decreasing ability to cover short-term obligations with cash and cash equivalents during this period.

However, the ratio showed some recovery by December 31, 2022, increasing to 4.10, and then stayed relatively stable around the 4.00 level from March 31, 2023, to June 30, 2023. It decreased noticeably to 3.30 on September 30, 2023, and further dropped to 2.16 on December 31, 2023.

The declining trend in the cash ratio continued through March 31, 2024, and June 30, 2024, reaching 2.41 and 2.37, respectively. Despite a slight increase to 2.55 on September 30, 2024, the ratio remained relatively low compared to previous periods, indicating potentially lower liquidity to cover short-term obligations with cash and cash equivalents.

Overall, Harmony Biosciences Holdings' cash ratio has experienced fluctuations, suggesting changes in the company's liquidity position over time. It is important for investors and stakeholders to monitor these trends to assess the company's ability to meet its short-term financial obligations efficiently.