Harmony Biosciences Holdings (HRMY)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.31 | 3.24 | 3.13 | 3.11 | 2.75 | 4.12 | 4.90 | 4.90 | 5.07 | 3.56 | 4.91 | 4.96 | 5.29 | 5.05 | 5.59 |
| Quick ratio | 3.14 | 3.05 | 2.93 | 2.93 | 2.61 | 3.90 | 4.67 | 4.64 | 4.79 | 3.38 | 4.62 | 4.65 | 5.01 | 4.68 | 5.22 |
| 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 |
Harmony Biosciences Holdings has maintained a strong current ratio over the years, indicating a healthy level of liquidity and ability to meet short-term obligations. The current ratio started at 5.59 in June 2021, peaked at 5.29 in December 2021, and has since fluctuated but generally remained above 4. This suggests that the company has more than enough current assets to cover its current liabilities.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects a solid liquidity position for the company. Starting at 5.22 in June 2021 and generally staying above 4, the quick ratio shows that Harmony Biosciences Holdings can meet its short-term liabilities without relying on selling inventory.
The cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) compared to current liabilities, shows a decreasing trend but remains relatively stable above 2. This indicates that the company holds a sufficient amount of cash to cover its immediate obligations.
Overall, Harmony Biosciences Holdings demonstrates strong liquidity based on its current, quick, and cash ratios, suggesting the company is well-positioned to meet its short-term financial commitments.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Harmony Biosciences Holdings has shown fluctuations over the periods provided in the data. A shorter cash conversion cycle indicates that the company is able to efficiently convert its investments in inventory and receivables back into cash.
Based on the data provided:
- The cash conversion cycle decreased from 55.06 days on June 30, 2021, to 31.29 days on June 30, 2024, showing an improvement in the company's operational efficiency in managing its cash flow.
- The cycle saw a gradual decline from March 31, 2022 (43.94 days) to December 31, 2023 (35.97 days), before experiencing a slight increase on September 30, 2024 (40.84 days).
- Harmony Biosciences Holdings reached its lowest cash conversion cycle on June 30, 2024, which can indicate effective management of inventory and receivables during that period.
Analyzing the cash conversion cycle can provide insights into how efficiently the company is managing its working capital and operating cycle, ultimately impacting its liquidity position and overall financial health.