Harmony Biosciences Holdings (HRMY)

Cash ratio

		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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	311,660	324,603	317,415	287,962	243,784	261,343	236,533	224,499	234,309	189,704	159,686	141,169	228,631	221,740
Short-term investments	US$ in thousands	41,800	46,071	53,568	55,916	79,331	46,420	17,638	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	163,781	112,408	93,045	85,363	78,884	107,357	65,764	56,528	53,775	47,623	36,595	33,437	134,539	31,790
Cash ratio		2.16	3.30	3.99	4.03	4.10	2.87	3.86	3.97	4.36	3.98	4.36	4.22	1.70	6.98

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($311,660K + $41,800K) ÷ $163,781K
= 2.16

The cash ratio of Harmony Biosciences Holdings Inc has shown a fluctuating trend over the past eight quarters. The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

In Q4 2023, the cash ratio decreased to 2.27, indicating a decline in the company's ability to cover its short-term liabilities with cash and cash equivalents compared to the previous quarter. This could signal a potential liquidity risk if the trend continues.

However, compared to the same quarter in the previous year (Q4 2022), the cash ratio has decreased from 4.33 to 2.27, indicating a significant decline in the company's liquidity position over the year. This could be a cause for concern as it suggests a weaker ability to meet short-term obligations with available cash.

Overall, the trend in Harmony Biosciences Holdings Inc's cash ratio shows some volatility, with fluctuations in the company's liquidity position. It would be important for the company to closely monitor and manage its cash resources to ensure it can meet its short-term obligations effectively.