Harmony Biosciences Holdings (HRMY)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	178,566	189,647	189,984	194,250
Total stockholders’ equity	US$ in thousands	466,992	402,838	186,507	97,180
Debt-to-capital ratio		0.28	0.32	0.50	0.67

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $178,566K ÷ ($178,566K + $466,992K)
= 0.28

The debt-to-capital ratio of Harmony Biosciences Holdings Inc has shown a declining trend over the past four years, decreasing from 0.67 in 2020 to 0.29 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments in relation to its total capital base. A lower debt-to-capital ratio generally implies lower financial risk and greater financial flexibility for the company. This trend suggests that Harmony Biosciences Holdings Inc has been managing its debt levels effectively and improving its capital structure over the years. The decreasing trend in the ratio is a positive sign for the company's financial health and long-term sustainability.