Harmony Biosciences Holdings (HRMY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Gross profit margin | 84.01% | 84.56% | 97.97% | 98.01% |
| Operating profit margin | 35.01% | 28.68% | 34.31% | 12.61% |
| Pretax margin | 31.61% | 24.98% | 14.67% | -30.72% |
| Net profit margin | 23.49% | 43.30% | 13.56% | -27.43% |
Harmony Biosciences Holdings Inc's profitability ratios have shown fluctuations over the past four years.
1. Gross Profit Margin: The company's gross profit margin has seen a slight decline from 82.64% in 2020 to 79.17% in 2023. This may indicate a decrease in the company's ability to control direct costs related to its products.
2. Operating Profit Margin: Harmony Biosciences' operating profit margin has been volatile, ranging from 10.63% in 2020 to 32.99% in 2023. The significant increase in 2023 suggests that the company has improved its operational efficiency and cost management.
3. Pretax Margin: The pretax margin has fluctuated significantly over the period, from -23.13% in 2020 to 29.79% in 2023. The positive trend indicates that the company has been able to generate more income before accounting for taxes in recent years.
4. Net Profit Margin: The net profit margin has also been volatile, ranging from -39.97% in 2020 to 41.44% in 2022. The substantial improvement in 2022 suggests a significant boost in profitability, followed by a slight decline in 2023 to 22.14%.
Overall, Harmony Biosciences Holdings Inc has shown varying profitability performance over the years, with improvements in operating and net profit margins in recent years. The company may need to focus on maintaining or enhancing its gross profit margin while sustaining the positive trends in operating and net profitability to ensure long-term financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.67% | 17.84% | 20.19% | 3.98% |
| Return on assets (ROA) | 15.88% | 26.93% | 7.98% | -8.65% |
| Return on total capital | 30.54% | 20.29% | 23.25% | 5.83% |
| Return on equity (ROE) | 27.59% | 45.05% | 18.55% | -38.02% |
Harmony Biosciences Holdings Inc has demonstrated a consistently strong operating return on assets (Operating ROA) over the past four years, with a notable increase from 3.98% in 2020 to 23.67% in 2023. This indicates that the company is effectively generating operating income relative to its total assets.
The Return on Assets (ROA) has shown some volatility, with a significant decline in 2020 to -14.95%, followed by a rebound to 26.93% in 2022. In 2023, the ROA stands at 15.88%, indicating a positive trend in generating net income relative to its total assets, albeit with some fluctuations.
The Return on Total Capital has consistently increased over the four-year period, reaching 29.07% in 2023. This ratio reflects the company's ability to generate profits from both debt and equity capital invested in the business.
The Return on Equity (ROE) shows a similar trend to the ROA, with significant fluctuations over the years. The ROE improved from -65.70% in 2020 to 27.59% in 2023, indicating an enhancement in the company's ability to generate profits for its shareholders.
Overall, Harmony Biosciences Holdings Inc's profitability ratios demonstrate strong performance in terms of utilizing assets and capital effectively to generate profits. The company has shown improvements in ROA, Operating ROA, Return on Total Capital, and ROE, indicating a positive trajectory in profitability over the years. However, the fluctuations in some ratios suggest a certain level of volatility in the company's financial performance that may require further analysis and monitoring.