Harmony Biosciences Holdings (HRMY)

Financial leverage 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
Total assets	US$ in thousands	811,448	777,766	760,183	715,092	673,870	643,464	505,034	464,005	433,443	391,092	359,695	337,252	427,074	320,073
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
Financial leverage ratio		1.74	1.62	1.57	1.61	1.67	1.87	2.05	2.16	2.32	2.57	2.84	3.13	4.39	3.39

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 fluctuated over the past eight quarters, ranging from 1.57 to 2.16. The trend indicates a decrease in financial leverage during Q3 2022 and Q4 2023, with the ratio stabilizing around 1.6 in the recent quarters. A ratio higher than 1 suggests that the company relies more on debt to finance its operations, while a lower ratio indicates a stronger equity position. The current ratio of 1.74 as of Q4 2023 implies that the company's debt level is 1.74 times its equity, which shows a moderate level of financial leverage. However, it is essential to evaluate the trend over time and compare with industry benchmarks to assess the company's capital structure and risk profile accurately.