Harmony Biosciences Holdings (HRMY)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	145,493	128,853	181,468	34,597	-36,944
Total stockholders’ equity	US$ in thousands	659,155	466,992	402,838	186,507	97,180
ROE		22.07%	27.59%	45.05%	18.55%	-38.02%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $145,493K ÷ $659,155K
= 22.07%

Based on the data provided, Harmony Biosciences Holdings' return on equity (ROE) has shown significant volatility over the past few years. In 2020, the company reported a negative ROE of -38.02%, indicating that the company's net income was insufficient to cover shareholder equity, possibly due to high expenses or losses.

However, there was a notable turnaround in 2021 when the ROE improved to 18.55%, suggesting that the company's profitability and efficiency in generating returns for shareholders had increased. This improvement continued into 2022, with a substantial ROE of 45.05%, indicating strong performance and effective utilization of equity.

In 2023, the ROE decreased slightly to 27.59%, but still remained at a relatively high level, indicating that the company continued to deliver solid returns for shareholders. By the end of 2024, the ROE further decreased to 22.07%, although it remained above the industry average, reflecting continued profitability and efficiency in utilizing equity.

Overall, Harmony Biosciences Holdings' ROE has shown variation over the years, with a notable improvement in recent years, signaling enhanced profitability and more effective management of shareholder equity. However, stakeholders should continue to monitor the company's ROE to ensure sustained performance and value creation.