Harmony Biosciences Holdings (HRMY)

Quick 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	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	—	—	—	—
Receivables	US$ in thousands	83,033	81,502	83,157	79,719	74,140	67,264	63,812	52,575	54,740	55,065	49,822	38,133	34,843	33,206	31,196
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
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

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 shown some fluctuations over the periods outlined. The quick ratio indicates the company's ability to meet its short-term obligations with its most liquid assets.

The quick ratio ranged from a high of 5.22 on June 30, 2021, to a low of 2.61 on December 31, 2023. Generally, a quick ratio of 1 or higher is considered healthy, as it suggests the company has enough liquid assets to cover its short-term liabilities.

Throughout the periods, the quick ratio mostly remained above 2, indicating a strong ability to cover short-term obligations with its quick assets. However, there were a few periods where the quick ratio dipped below 2, particularly on December 31, 2023, and in the following quarters. This may indicate a temporary strain on liquidity or a decrease in quick assets compared to short-term liabilities.

It is important for Harmony Biosciences Holdings to closely monitor its quick ratio to ensure it maintains a healthy level of liquidity to meet its short-term obligations without relying too heavily on selling inventory or other less liquid assets. Further analysis would be beneficial to understand the reasons behind the fluctuations and to assess the company's overall financial health.