ADMA Biologics Inc (ADMA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.98 | 0.73 | 0.64 | 0.75 | 0.74 |
| Receivables turnover | 9.42 | 9.94 | 2.83 | 3.19 | 8.46 |
| Payables turnover | 10.81 | 8.98 | 6.42 | 5.53 | 4.31 |
| Working capital turnover | 1.25 | 0.67 | 0.45 | 0.32 | 0.41 |
Based on the activity ratios of ADMA Biologics Inc over the past five years:
1. Inventory Turnover: ADMA Biologics Inc's inventory turnover has been relatively low and somewhat fluctuating over the years, ranging from 0.64 to 0.98. This indicates that the company is selling its inventory less frequently compared to its competitors in the industry.
2. Receivables Turnover: The company's receivables turnover ratio has shown significant fluctuations, ranging from 2.83 to 9.94. A higher receivables turnover ratio suggests that ADMA Biologics is efficient in collecting payments from its customers.
3. Payables Turnover: ADMA Biologics Inc's payables turnover ratio has been generally increasing over the years, indicating that the company is taking longer to pay its suppliers. This could potentially be a strategic move to manage cash flows.
4. Working Capital Turnover: The company's working capital turnover ratio has shown an increasing trend over the years, signaling improved efficiency in utilizing its working capital to generate sales. This suggests that ADMA Biologics is making better use of its resources to drive revenue growth.
In conclusion, while the inventory turnover could be an area for improvement, ADMA Biologics Inc's receivables turnover and working capital turnover ratios demonstrate efficiency in collecting payments and utilizing working capital effectively. The increasing payables turnover ratio could be a strategic decision to manage cash flows.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 372.83 | 501.60 | 570.70 | 485.56 | 490.30 |
| Days of sales outstanding (DSO) | days | 38.76 | 36.73 | 128.86 | 114.44 | 43.15 |
| Number of days of payables | days | 33.77 | 40.64 | 56.87 | 65.95 | 84.77 |
ADMA Biologics Inc's activity ratios reveal some significant fluctuations over the past five years.
1. Days of inventory on hand (DOH):
- The company's DOH has been gradually decreasing from 570.70 days in 2021 to 372.83 days in 2023, indicating a more efficient management of inventory levels.
- However, the significant drop in 2022 from 501.60 days to 570.70 days raises concerns about potentially insufficient inventory levels or issues with production planning.
2. Days of sales outstanding (DSO):
- ADMA Biologics Inc managed to decrease its DSO from 128.86 days in 2021 to 38.76 days in 2023, indicating a faster collection of accounts receivable.
- The sharp increase in 2021 from 36.73 days to 128.86 days might have been caused by issues with credit policies or collection procedures that were later addressed.
3. Number of days of payables:
- The company has been effective in reducing its days of payables from 84.77 days in 2019 to 33.77 days in 2023, implying more timely payments to suppliers.
- The fluctuations in 2020 and 2021 show some irregularities in the company's payables management, which might have been due to various factors such as negotiation terms or cash flow constraints.
Overall, ADMA Biologics Inc has shown improvements in its activity ratios over the years, particularly in managing inventory and receivables more efficiently. However, the fluctuations observed in some ratios suggest that the company may need to consistently monitor and optimize its working capital management practices to ensure sustained operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 4.80 | 2.64 | 1.59 | 1.02 | 0.92 |
| Total asset turnover | 0.78 | 0.44 | 0.29 | 0.20 | 0.23 |
ADMA Biologics Inc's fixed asset turnover has been showing a positive trend over the past five years, increasing from 0.92 in 2019 to 4.80 in 2023. This indicates that the company has been able to generate significantly more revenue from its fixed assets over time. The rising fixed asset turnover is a positive sign of operational efficiency and effective utilization of long-term assets.
In contrast, the total asset turnover ratio has also been steadily improving, albeit at a slower rate compared to the fixed asset turnover. The total asset turnover ratio increased from 0.23 in 2019 to 0.78 in 2023, indicating that the company has been generating more revenue for each dollar of total assets invested. This improvement implies that ADMA Biologics is becoming more efficient in generating sales relative to its total asset base.
Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios suggest that ADMA Biologics Inc has been efficiently utilizing its long-term assets to generate revenue and improve its operational performance over the years.