Harmony Biosciences Holdings (HRMY)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 811,448 | 673,870 | 433,443 | 427,074 |
| Total stockholders’ equity | US$ in thousands | 466,992 | 402,838 | 186,507 | 97,180 |
| Financial leverage ratio | 1.74 | 1.67 | 2.32 | 4.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $811,448K ÷ $466,992K
= 1.74
The financial leverage ratio of Harmony Biosciences Holdings Inc has seen fluctuations over the past four years. The ratio decreased from 4.39 in 2020 to 2.32 in 2021, indicating a significant improvement in the company's leverage position. However, there was a subsequent increase to 1.67 in 2022 before rising further to 1.74 in 2023.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity. The decreasing trend from 2020 to 2021 suggests that the company might have taken steps to reduce its debt levels and improve its financial stability. However, the slight increase in 2022 and 2023 may indicate that the company increased its debt relative to equity in those years.
Overall, the company's financial leverage ratio reflects a mix of debt and equity financing strategies over the years, and further analysis of the company's financial position and debt management practices may provide additional insights into its leverage decisions.
Peer comparison
Dec 31, 2023