Harmony Biosciences Holdings (HRMY)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 453,001 | 311,660 | 243,784 | 234,309 | 228,631 |
| Short-term investments | US$ in thousands | 14,185 | 41,800 | 79,331 | — | — |
| Receivables | US$ in thousands | 83,033 | 74,140 | 54,740 | 34,843 | 22,176 |
| Total current liabilities | US$ in thousands | 175,082 | 163,781 | 78,884 | 53,775 | 134,539 |
| Quick ratio | 3.14 | 2.61 | 4.79 | 5.01 | 1.86 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($453,001K
+ $14,185K
+ $83,033K)
÷ $175,082K
= 3.14
The quick ratio of Harmony Biosciences Holdings has demonstrated significant variability over the past five years, ranging from a low of 1.86 in December 2020 to a high of 5.01 in December 2021. This ratio indicates the company's ability to meet its short-term obligations using its most liquid assets. In December 2022, the quick ratio decreased slightly to 4.79, before declining further to 2.61 in December 2023. However, it rebounded to 3.14 by December 2024.
The trend observed in the quick ratio suggests fluctuations in Harmony Biosciences Holdings' liquidity position over the years. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its immediate liabilities. The substantial increase in the quick ratio from 2020 to 2021 may indicate improved liquidity management or increased cash reserves.
Although the quick ratio decreased in 2023, the subsequent rise in 2024 suggests a potential improvement in the company's short-term liquidity position. It is essential for investors and stakeholders to monitor these changes in the quick ratio over time to assess Harmony Biosciences Holdings' ability to manage its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024