Harmony Biosciences Holdings (HRMY)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	163,016	178,566	189,647	189,984	194,250
Total assets	US$ in thousands	999,200	811,448	673,870	433,443	427,074
Debt-to-assets ratio		0.16	0.22	0.28	0.44	0.45

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $163,016K ÷ $999,200K
= 0.16

The debt-to-assets ratio for Harmony Biosciences Holdings has been decreasing over the years, reflecting a positive trend in the company's financial position. As of December 31, 2020, the ratio stood at 0.45, indicating that 45% of the company's assets were financed by debt. By December 31, 2024, the ratio had decreased to 0.16, suggesting that only 16% of the company's assets were funded by debt.

This decline in the debt-to-assets ratio signifies that Harmony Biosciences Holdings has been reducing its reliance on debt to finance its operations and investments. A lower debt-to-assets ratio is generally considered favorable as it indicates a lower financial risk and better financial health for the company. It also suggests that the company may have improved cash flow or profitability, enabling it to repay debt obligations and strengthen its balance sheet.