ADMA Biologics Inc (ADMA)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		8.53	9.42	9.94	2.83	3.19
DSO	days	42.79	38.76	36.73	128.86	114.44

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.53
= 42.79

Based on the data provided, ADMA Biologics Inc's Days Sales Outstanding (DSO) has shown fluctuations over the years. In December 31, 2020, the DSO was 114.44 days, indicating that on average, it took the company about 114.44 days to collect its accounts receivable. By December 31, 2021, the DSO increased to 128.86 days, suggesting a potential delay in collecting payments from customers.

However, there was a significant improvement in the efficiency of receivables collection by December 31, 2022, with the DSO decreasing to 36.73 days. This sharp decline may indicate better credit control practices or a more streamlined billing and collection process. The trend continued into December 31, 2023, with the DSO slightly increasing to 38.76 days, still showing effective management of accounts receivable.

By December 31, 2024, the DSO rose to 42.79 days, which is still relatively low compared to the earlier years. Overall, the analysis suggests that ADMA Biologics Inc has made progress in optimizing its accounts receivable turnover and collection processes, leading to improved liquidity and potentially better cash flow management.