ADMA Biologics Inc (ADMA)

Days of sales outstanding (DSO)

		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
Receivables turnover		8.53	7.63	10.97	5.71	9.42	7.48	5.67	6.86	9.94	6.24	5.83	3.67	2.83	3.36	2.47	3.13	3.19	6.36	5.72	5.07
DSO	days	42.79	47.81	33.28	63.93	38.76	48.79	64.42	53.21	36.73	58.47	62.62	99.52	128.86	108.64	147.89	116.65	114.44	57.38	63.83	72.03

December 31, 2024 calculation

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

The days sales outstanding (DSO) is a key metric that indicates the average number of days it takes a company to collect payment after making a sale. A lower DSO value signifies a more efficient accounts receivable process, as it indicates that the company is collecting payments from customers more quickly.

Analyzing the DSO trend of ADMA Biologics Inc over the given periods, we observe fluctuations in the collection period. The DSO for ADMA Biologics Inc ranged from a low of 33.28 days on June 30, 2024, to a high of 147.89 days on June 30, 2021. The company experienced significant variability in its DSO during this period, with fluctuations seen in individual quarters.

The DSO increased notably in the quarters ending December 31, 2020, to March 31, 2021, and June 30, 2021, indicating potential challenges in collecting payments from customers during those periods. However, the company managed to reduce its DSO afterward, reaching a low of 33.28 days on June 30, 2024.

Overall, it is important for ADMA Biologics Inc to effectively manage its accounts receivable process to ensure timely collection of payments from customers. A consistent focus on improving DSO can enhance the company's cash flow and overall financial performance.