Harmony Biosciences Holdings (HRMY)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	128,853	181,468	34,597	-36,944
Total stockholders’ equity	US$ in thousands	466,992	402,838	186,507	97,180
ROE		27.59%	45.05%	18.55%	-38.02%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $128,853K ÷ $466,992K
= 27.59%

Harmony Biosciences Holdings Inc's return on equity (ROE) has been fluctuating over the past four years. In 2023, the ROE stands at 27.59%, representing a decrease from the previous year's level of 45.05%. This drop indicates that the company's ability to generate profit from its equity has diminished year over year. However, compared to the ROE of 2019 and 2020, the current ROE remains at a higher level. In 2021, Harmony Biosciences experienced an ROE of 18.55%, showing a notable improvement from the negative ROE of -65.70% in 2020. Overall, while the recent ROE suggests a decline in profitability compared to the prior year, the company has made significant progress in turning around its return on equity since 2020.