Harmony Biosciences Holdings (HRMY)

Quick 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	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	—	—	—	—	—	—	—
Receivables	US$ in thousands	74,140	67,264	63,812	52,575	54,740	55,065	49,822	38,133	34,843	33,206	31,196	23,615	22,176	16,326
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
Quick ratio		2.61	3.90	4.67	4.64	4.79	3.38	4.62	4.65	5.01	4.68	5.22	4.93	1.86	7.49

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($311,660K + $41,800K + $74,140K) ÷ $163,781K
= 2.61

The quick ratio measures a company's ability to pay its short-term obligations using its most liquid assets. In the case of Harmony Biosciences Holdings Inc, the quick ratio has displayed a generally positive trend over the past eight quarters.

The quick ratio increased from 5.02 in Q4 2022 to 2.72 in Q4 2023, showing a decrease in liquidity. However, it rebounded significantly in the following quarters, reaching its highest point of 4.85 in Q1 2023. This indicates that in the most recent quarter, the company had $4.85 in liquid assets available to cover each dollar of its current liabilities.

The fluctuation in the quick ratio may be attributed to changes in the company's current assets and liabilities composition. A higher quick ratio suggests that Harmony Biosciences Holdings Inc has sufficient liquid assets to meet its short-term financial obligations. Additionally, the consistent levels above 1 indicate that the company's short-term liquidity position appears to be strong and improving over time.

Overall, the steady improvement in Harmony Biosciences Holdings Inc's quick ratio signals a positive liquidity position and indicates the company's ability to handle its short-term financial obligations effectively.