HRMY (Harmony Biosciences Holdings) Sloan Ratio % : -0.68% (As of Dec. 2024)

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What is Harmony Biosciences Holdings Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Harmony Biosciences Holdings's Sloan Ratio for the quarter that ended in Dec. 2024 was -0.68%.

As of Dec. 2024, Harmony Biosciences Holdings has a Sloan Ratio of -0.68%, indicating the company is in the safe zone and there is no funny business with accruals.

Harmony Biosciences Holdings Sloan Ratio % Historical Data

The historical data trend for Harmony Biosciences Holdings's Sloan Ratio % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Harmony Biosciences Holdings Sloan Ratio % Chart

Harmony Biosciences Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Sloan Ratio %

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-7.48

8.38

26.54

-5.43

-0.68

Harmony Biosciences Holdings Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Sloan Ratio %	Get a 7-Day Free Trial															-5.43	-2.29	-0.07	-0.21	-0.68

Competitive Comparison of Harmony Biosciences Holdings's Sloan Ratio %

For the Biotechnology subindustry, Harmony Biosciences Holdings's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Harmony Biosciences Holdings's Sloan Ratio % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Harmony Biosciences Holdings's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Harmony Biosciences Holdings's Sloan Ratio % falls into.

Harmony Biosciences Holdings Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Harmony Biosciences Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2024 )	-	Cash Flow from Operations (A: Dec. 2024 )
	-	Cash Flow from Investing (A: Dec. 2024 ))	/	Total Assets (A: Dec. 2024 )
	=	(145.493	-	219.821
	-	-67.484)	/	999.2
	=	-0.68%

Harmony Biosciences Holdings's Sloan Ratio for the quarter that ended in Dec. 2024 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2024 )
	=	(145.493	-	219.821
	-	-67.484)	/	999.2
	=	-0.68%

Harmony Biosciences Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 38.334 (Mar. 2024 ) + 11.591 (Jun. 2024 ) + 46.093 (Sep. 2024 ) + 49.475 (Dec. 2024 ) = $145.5 Mil.
Harmony Biosciences Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 31.141 (Mar. 2024 ) + 42.617 (Jun. 2024 ) + 70.501 (Sep. 2024 ) + 75.562 (Dec. 2024 ) = $219.8 Mil.
Harmony Biosciences Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -6.186 (Mar. 2024 ) + -54.856 (Jun. 2024 ) + 0.745 (Sep. 2024 ) + -7.187 (Dec. 2024 ) = $-67.5 Mil.

Harmony Biosciences Holdings (NAS:HRMY) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Dec. 2024, Harmony Biosciences Holdings has a Sloan Ratio of -0.68%, indicating the company is in the safe zone and there is no funny business with accruals.

Harmony Biosciences Holdings Sloan Ratio % Related Terms

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Harmony Biosciences Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Harmony Biosciences Holdings Inc (NAS:HRMY) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

630 West Germantown Pike, Suite 215, Plymouth Meeting, PA, USA, 19462

Website

https://www.harmonybiosciences.com

Harmony Biosciences Holdings Inc is a commercial-stage pharmaceutical company focused on developing and commercializing therapies for patients living with rare neurological diseases who have unmet medical needs. The company's product WAKIX (pitolisant), is a molecule with a novel mechanism of action specifically designed to increase histamine signaling in the brain by binding to H3 receptors and used for the treatment of cataplexy in adult patients with narcolepsy.

Executives

Jeffrey Dierks	officer: Chief Commercial Officer	630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Sandip Kapadia	officer: Chief Financial Officer	450 WEST 15 STREET, SUITE 505, NEW YORK NY 10011
Jeffrey M. Dayno	officer: Chief Medical Officer	460 EAST SWEDESFORD ROAD, SUITE 1050, WAYNE PA 19087
Marshman Fund Trust Ii	10 percent owner	630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Valor Iv Pharma Holdings, Llc	10 percent owner	875 N. MICHIGAN AVENUE, SUITE 3214, CHICAGO IL 60611
Peter Anastasiou	director	C/O HARMONY BIOSCIENCES HOLDINGS, INC., 630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Andreas Wicki	director	C/O HBM BIOVENTURES (CAYMAN) LTD., CENTENNIAL TOWERS,STE.305,2454 W.BAY RD., GRAND CAYMAN E9 E9
Jack Nielsen	director	C/O AKEBIA THERAPEUTICS, INC., 245 FIRST STREET, SUITE 1100, CAMBRIDGE MA 02142
Andrew Serafin	officer: Chief Business Officer	630 W. GERMANTOWN PIKE, PLYMOUTH MEETING PA 19462
John C Jacobs	director, officer: President, CEO	630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Linda M Szyper	director	C/O NEOS THERAPEUTICS, INC., 2940 N. HIGHWAY 250, SUITE 400, GRAND PRAIRIE TX 75050
Eric L Motley	director	1516 33RD STREET NW, WASHINGTON DC 20007
R. Mark Graf	director	C/O DISCOVER FINANCIAL SERVICES, 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Novo Holdings A/s	10 percent owner	TUBORG HAVNEVEJ 19, HELLERUP G7 2900
Valor Management L.p.	10 percent owner	875 N. MICHIGAN AVENUE, SUITE 3214, CHICAGO IL 60611