ADMA Biologics Inc (ADMA)

Days of inventory on hand (DOH)

		Dec 31, 2024	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
Inventory turnover		1.22	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
DOH	days	300.32	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.22
= 300.32

The days of inventory on hand (DOH) metric for ADMA Biologics Inc has shown fluctuations over the periods analyzed. The DOH has ranged from a high of 580.84 days as of March 31, 2022, to a low of 300.32 days as of December 31, 2024.

The trend indicates that ADMA Biologics Inc managed its inventory more efficiently in the latter part of the period, with a decreasing trend in DOH from 2022 to 2024. Lower DOH values imply that the company is holding inventory for fewer days before selling it, which may indicate improved inventory management, efficient production processes, or better demand forecasting.

It's worth noting that a very low DOH figure, such as the 300.32 days recorded on December 31, 2024, might signal potential inventory shortages or production challenges if not managed carefully. Conversely, a very high DOH, such as the peak of 580.84 days on March 31, 2022, could suggest excess inventory levels, tying up capital and increasing holding costs.

Analyzing the DOH alongside other financial and operational metrics can provide a more comprehensive assessment of the company's overall efficiency and performance in managing its inventory levels.