ADMA Biologics Inc (ADMA)

Days of inventory on hand (DOH)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Inventory turnover		1.14	0.99	0.97	0.98	0.99	0.93	0.82	0.73	0.65	0.65	0.63	0.64	0.67	0.68	0.66	0.75	0.77	0.89	0.90	0.74
DOH	days	320.75	368.83	377.96	372.83	366.93	390.87	447.43	501.60	561.61	562.76	580.84	570.70	548.03	538.57	552.18	485.56	472.60	409.36	406.70	490.30

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.14
= 320.75

ADMA Biologics Inc's days of inventory on hand (DOH) has shown fluctuations over the past few years, ranging from a low of 320.75 days to a high of 580.84 days. The trend indicates that the company has generally kept inventory for an extended period, with occasional spikes in inventory holding times.

The increasing trend in DOH from 2020 to 2022, peaking at 580.84 days, suggests a buildup of inventory levels or potential inefficiencies in the inventory management process during that period. This could lead to higher carrying costs, risk of obsolescence, and tied-up capital in inventory.

However, the subsequent decrease in DOH from 2022 to 2024 may indicate efforts by the company to streamline its inventory management practices or adjust production levels to better align with demand. The decrease in DOH can also be a positive sign of improved efficiency in managing inventory or a shift towards a more demand-driven supply chain approach.

Overall, analyzing ADMA Biologics Inc's DOH over time provides insight into the company's inventory management efficiency, highlighting potential areas for improvement and identifying trends that can impact the company's working capital management and overall operational performance.