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.
Peer comparison
Dec 31, 2024