Harmony Biosciences Holdings (HRMY)

Current 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
Total current assets	US$ in thousands	451,070	462,998	455,641	418,087	400,285	382,082	322,702	280,257	284,439	240,691	204,714	177,744	262,891	250,242
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
Current ratio		2.75	4.12	4.90	4.90	5.07	3.56	4.91	4.96	5.29	5.05	5.59	5.32	1.95	7.87

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $451,070K ÷ $163,781K
= 2.75

Harmony Biosciences Holdings Inc's current ratio has shown some fluctuations over the past eight quarters, ranging from a low of 2.75 in Q4 2023 to a high of 5.07 in Q4 2022. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.

The company's current ratio has generally been above 4 in recent quarters, indicating a comfortable liquidity position and the ability to meet short-term obligations with current assets. However, the recent decrease in the current ratio from Q3 2023 to Q4 2023 may signal a slight weakening of liquidity position or changes in current asset and liability composition.

It is important for investors and stakeholders to continue monitoring Harmony Biosciences Holdings Inc's current ratio to assess its short-term liquidity and financial health. An analysis of the underlying factors that drive changes in the current ratio can provide valuable insights into the company's financial performance and management of working capital.