Harmony Biosciences Holdings (HRMY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 78.06% | 84.01% | 84.56% | 97.97% | 98.01% |
| Operating profit margin | 26.70% | 35.01% | 28.68% | 34.31% | 12.61% |
| Pretax margin | 26.84% | 31.61% | 24.98% | 14.67% | -30.72% |
| Net profit margin | 20.36% | 23.49% | 43.30% | 13.56% | -27.43% |
Harmony Biosciences Holdings has shown strong gross profit margins consistently above 78% in the past five years, indicating the company's ability to effectively manage its production costs and generate profits from its core operations. The operating profit margin has fluctuated but generally remained at healthy levels, with a significant improvement from 2020 to 2021.
The pretax margin has shown an impressive recovery from negative in 2020 to positive values in the following years, reflecting the company's ability to control its operating expenses and generate income before taxes. The trend indicates a consistent improvement in the company's profitability before accounting for taxes.
The net profit margin, a key indicator of overall profitability, has also shown improvement over the years, although there was a slight decrease from 2022 to 2024. Despite this, the company maintained a healthy level of profitability relative to its revenue in 2024.
Overall, Harmony Biosciences Holdings has demonstrated a strong performance in terms of profitability ratios, with improvements in operating efficiency and overall profitability over the five-year period. However, there may be room for further optimization to sustain or enhance profitability levels in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.10% | 23.67% | 17.84% | 20.19% | 3.98% |
| Return on assets (ROA) | 14.56% | 15.88% | 26.93% | 7.98% | -8.65% |
| Return on total capital | 23.21% | 30.54% | 20.29% | 23.25% | 5.83% |
| Return on equity (ROE) | 22.07% | 27.59% | 45.05% | 18.55% | -38.02% |
Harmony Biosciences Holdings has shown a significant improvement in its profitability ratios over the past five years.
- Operating return on assets (Operating ROA) has increased steadily from 3.98% in December 31, 2020 to 19.10% in December 31, 2024, indicating that the company's operating income generated from its assets has been improving consistently.
- Return on assets (ROA) has also shown positive growth, starting from a negative -8.65% in December 31, 2020 to reach 14.56% in December 31, 2024. This signifies that the company has been able to generate more profit from its total assets over the years.
- Return on total capital has exhibited a strong performance, increasing from 5.83% in December 31, 2020 to 23.21% in December 31, 2024. This ratio reflects the efficiency of the company in generating returns for both debt and equity holders.
- Return on equity (ROE) has displayed a notable improvement as well, rising from a negative -38.02% in December 31, 2020 to 22.07% in December 31, 2024. This indicates that the company has been able to generate higher returns for its shareholders over time.
Overall, Harmony Biosciences Holdings has demonstrated a positive trend in its profitability ratios, showcasing effective management of assets and capital to drive profitability and return for its investors.