ADMA Biologics Inc (ADMA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.42	9.94	2.83	3.19	8.46
DSO	days	38.76	36.73	128.86	114.44	43.15

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.42
= 38.76

Based on the data provided, ADMA Biologics Inc's days of sales outstanding (DSO) has fluctuated over the past five years.

In 2019, the DSO was relatively low at 43.15 days, indicating that the company was efficient in collecting its accounts receivable. However, there was a significant increase in 2021, with the DSO spiking to 128.86 days, suggesting that ADMA Biologics Inc took much longer to collect its receivables that year.

The DSO improved in the subsequent years, reaching 114.44 days in 2020, 36.73 days in 2022, and 38.76 days in 2023. The decreasing trend in DSO from 2021 to 2023 indicates that the company has been more effective in collecting payments from customers, which could potentially enhance its liquidity position and overall financial health.

It is advisable for ADMA Biologics Inc to continue monitoring and managing its DSO to ensure efficient accounts receivable management, timely collections, and improved cash flow.