Harmony Biosciences Holdings (HRMY)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	192,030	199,447	146,839	133,053	120,186	101,204	110,356	100,552	87,529	66,656	55,983
Long-term debt	US$ in thousands	178,566	182,131	180,487	185,063	189,647	189,725	189,807	189,896	189,984	190,069	195,610	194,913	194,250	192,858
Total stockholders’ equity	US$ in thousands	466,992	481,332	485,172	443,041	402,838	343,884	246,533	214,503	186,507	152,018	126,551	107,879	97,180	94,549
Return on total capital		29.75%	30.06%	22.06%	21.18%	20.29%	18.97%	25.29%	24.86%	23.25%	19.49%	17.38%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $192,030K ÷ ($178,566K + $466,992K)
= 29.75%

Harmony Biosciences Holdings Inc's return on total capital has shown a generally positive trend over the past eight quarters, ranging from 18.89% in Q3 2022 to 29.40% in Q3 2023. The return on total capital indicates that the company has been effectively utilizing its capital to generate returns for its investors and stakeholders. The consistent improvement in this ratio demonstrates the company's efficiency in deploying its resources to generate profits. The increase in return on total capital from Q1 2022 to Q4 2023 indicates that Harmony Biosciences Holdings Inc has been successful in enhancing its overall profitability and maximizing its capital efficiency over time.