Harmony Biosciences Holdings (HRMY)

Debt-to-equity 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 stockholders’ equity US$ in thousands 659,155 466,992 402,838 186,507 97,180
Debt-to-equity ratio 0.25 0.38 0.47 1.02 2.00

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $163,016K ÷ $659,155K
= 0.25

The debt-to-equity ratio of Harmony Biosciences Holdings has shown a decreasing trend over the past five years. Starting at 2.00 on December 31, 2020, the ratio has steadily declined to 1.02 by December 31, 2021, indicating a reduction in the company's financial leverage. This trend continued as the ratio further decreased to 0.47 on December 31, 2022, and to 0.38 on December 31, 2023. By December 31, 2024, the debt-to-equity ratio reached its lowest point at 0.25, demonstrating a stronger equity position relative to debt and potentially signaling improved financial stability for the company. Overall, the decreasing trend in the debt-to-equity ratio suggests that Harmony Biosciences Holdings has been effectively managing its debt levels and may have enhanced its financial health over the analyzed period.