Harmony Biosciences Holdings (HRMY)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 190,826 | 197,153 | 120,186 | 87,528 | 16,986 |
| Interest expense | US$ in thousands | 17,496 | 23,757 | 18,795 | 24,193 | 2,412 |
| Interest coverage | 10.91 | 8.30 | 6.39 | 3.62 | 7.04 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $190,826K ÷ $17,496K
= 10.91
Over the years from 2020 to 2024, Harmony Biosciences Holdings' interest coverage ratio has shown fluctuations. In 2020, the interest coverage ratio was 7.04, indicating the company's ability to cover its interest expenses 7.04 times over with its operating income. However, in 2021, the ratio decreased to 3.62, suggesting a decrease in the company's ability to cover its interest payments.
The following years saw improvements in the interest coverage ratio, with ratios of 6.39 in 2022, 8.30 in 2023, and 10.91 in 2024. These increases indicate a strengthened ability to meet interest obligations with operating income in those years.
Overall, the varying trend in the interest coverage ratios suggests that Harmony Biosciences Holdings experienced fluctuations in its ability to cover interest expenses during this period, with notable improvements observed in the latter years of the analysis.
Peer comparison
Dec 31, 2024