ADMA Biologics Inc (ADMA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.22 | 0.98 | 0.73 | 0.64 | 0.75 |
| Receivables turnover | 8.53 | 9.42 | 9.94 | 2.83 | 3.19 |
| Payables turnover | 10.23 | 10.81 | 8.98 | 6.42 | 5.53 |
| Working capital turnover | 1.55 | 1.25 | 0.67 | 0.45 | 0.32 |
The activity ratios of ADMA Biologics Inc have shown varied trends over the years as follows:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. ADMA Biologics Inc's inventory turnover has fluctuated over the years, decreasing from 0.75 in 2020 to 0.64 in 2021, before increasing to 1.22 in 2024. This indicates that in 2024, the company was able to sell its inventory more quickly compared to previous years, potentially leading to better liquidity and lower holding costs.
2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company collects on its credit sales. ADMA Biologics Inc's receivables turnover has shown a significant increase from 3.19 in 2020 to 9.42 in 2023, before slightly decreasing to 8.53 in 2024. This suggests that the company improved its collection process in 2023, but still maintained a strong turnover ratio in 2024, indicating efficient management of accounts receivable.
3. Payables Turnover:
- The payables turnover ratio evaluates how quickly a company pays its suppliers. ADMA Biologics Inc's payables turnover has been on an upward trend, increasing from 5.53 in 2020 to 10.23 in 2024. This suggests that the company was able to extend its payment period to suppliers while maintaining good relationships, potentially improving cash flow management.
4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively a company generates revenue from its working capital. ADMA Biologics Inc's working capital turnover has consistently increased over the years, from 0.32 in 2020 to 1.55 in 2024. This indicates that the company has become more efficient in utilizing its working capital to generate sales revenue, implying improved operational efficiency.
Overall, the activity ratios of ADMA Biologics Inc demonstrate positive trends in inventory, receivables, payables, and working capital turnover, suggesting effective management of assets and operations across the years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 300.32 | 372.83 | 501.60 | 570.70 | 485.56 |
| Days of sales outstanding (DSO) | days | 42.79 | 38.76 | 36.73 | 128.86 | 114.44 |
| Number of days of payables | days | 35.67 | 33.77 | 40.64 | 56.87 | 65.95 |
ADMA Biologics Inc's activity ratios, including Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH):
- The trend of DOH indicates the number of days it takes for ADMA Biologics Inc to convert its inventory into sales.
- The company's DOH has fluctuated over the years, with a significant decrease from 570.70 days in December 2021 to 300.32 days in December 2024.
- A lower DOH value typically suggests efficient inventory management, indicating that the company is selling its products more quickly.
2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for ADMA Biologics Inc to collect payment after making a sale.
- The trend of DSO shows an increase from 114.44 days in December 2020 to 42.79 days in December 2024.
- A decreasing DSO value may signify effective credit and collection policies, allowing the company to receive payments faster.
3. Number of Days of Payables:
- This ratio reflects the average number of days it takes for ADMA Biologics Inc to pay its suppliers or vendors.
- The trend of days of payables demonstrates a declining trend from 65.95 days in December 2020 to 35.67 days in December 2024.
- A decreasing number of days of payables suggests that the company is paying its suppliers more quickly, which could impact cash flow management.
In conclusion, ADMA Biologics Inc's activity ratios show improvements in inventory management efficiency, faster collection of sales, and quicker payment to suppliers. These trends indicate potential enhancements in operational effectiveness and financial performance over the analyzed period.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 7.80 | 4.80 | 2.64 | 1.59 | 1.02 |
| Total asset turnover | 0.87 | 0.78 | 0.44 | 0.29 | 0.20 |
The Fixed Asset Turnover ratio for ADMA Biologics Inc has been steadily increasing over the years, indicating that the company is becoming more efficient in generating revenue from its fixed assets. The ratio has increased from 1.02 in 2020 to 7.80 in 2024, which is a significant improvement.
Similarly, the Total Asset Turnover ratio has also been showing an increasing trend, suggesting that the company is utilizing its total assets more effectively to generate sales. The ratio has risen from 0.20 in 2020 to 0.87 in 2024, demonstrating an improvement in the company's overall asset utilization efficiency.
Overall, the increasing trends in both the Fixed Asset Turnover and Total Asset Turnover ratios for ADMA Biologics Inc indicate that the company is making efficient use of its assets to generate revenue, which is a positive indicator of its long-term operational efficiency and financial performance.