Harmony Biosciences Holdings (HRMY)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.28	0.27	0.27	0.29	0.32	0.36	0.43	0.47	0.50	0.56	0.61	0.64	0.67	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 been relatively stable over the past eight quarters, ranging between 0.28 and 0.47. The ratio indicates the proportion of the company's capital that is funded by debt, with lower values indicating lower reliance on debt for financing.

From Q4 2022 to Q2 2023, there was a gradual decrease in the debt-to-capital ratio, suggesting a potentially improved financial position or a shift towards equity financing. However, in Q3 2023 and Q4 2023, the ratio remained constant at 0.29, indicating a balanced mix of debt and equity in the company's capital structure.

Overall, the debt-to-capital ratio trend reflects a prudent approach to managing the company's capital structure, balancing debt and equity financing sources to ensure financial stability and operational flexibility. Further analysis of the company's financial health and future growth prospects would provide more insights into the significance of these fluctuations in the ratio.