Harmony Biosciences Holdings (HRMY)

Solvency ratios

	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
Debt-to-assets ratio	0.22	0.23	0.24	0.26	0.28	0.29	0.38	0.41	0.44	0.49	0.54	0.58	0.45	0.60
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
Debt-to-equity ratio	0.38	0.38	0.37	0.42	0.47	0.55	0.77	0.89	1.02	1.25	1.55	1.81	2.00	2.04
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

The solvency ratios of Harmony Biosciences Holdings Inc indicate the company's ability to meet its long-term financial obligations. Looking at the trend over the past eight quarters, the debt-to-assets ratio has remained relatively stable, ranging from 0.24 to 0.41. This ratio indicates that between 24% and 41% of the company's total assets are financed by debt, with the lower ratios suggesting a healthier financial position.

Similarly, the debt-to-capital and debt-to-equity ratios have displayed consistency over time, reflecting the proportion of debt relative to the company's total capital and equity, respectively. These ratios fluctuate between 0.28 to 0.47 and 0.39 to 0.89, respectively, with the lower values typically viewed as favorable due to lower leverage and financial risk.

The financial leverage ratio, which represents the extent of the company's financial leverage, has shown some variability, ranging from 1.57 to 2.16. Higher values indicate higher financial risk and reliance on debt financing.

Overall, while Harmony Biosciences Holdings Inc has maintained stable solvency ratios over the quarters, it is essential for the company to monitor and manage its debt levels effectively to ensure sustainable financial health and long-term stability.

Coverage ratios

	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
Interest coverage	8.08	8.17	6.58	6.56	6.39	5.75	6.08	4.73	4.95	4.50	3.43

Harmony Biosciences Holdings Inc's interest coverage has been consistently improving over the past eight quarters, indicating the company's ability to fulfill its interest payment obligations with its earnings. The interest coverage ratio has increased from 4.79 in Q1 2022 to 21.27 in Q4 2023, reflecting a significant enhancement in the company's ability to cover its interest expenses. This upward trend suggests that Harmony Biosciences Holdings Inc is becoming more profitable and financially stable over time. Additionally, the steady improvement in interest coverage ratios demonstrates that the company is effectively managing its debt and generating sufficient earnings to meet its interest payment commitments.