ADMA Biologics Inc (ADMA)

Days of sales outstanding (DSO)

		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
Receivables turnover		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	8.46
DSO	days	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	43.15

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.63
= 47.81

The days of sales outstanding (DSO) for ADMA Biologics Inc have fluctuated over the past few quarters, indicating variations in its collection efficiency. A lower DSO indicates that the company is able to collect its accounts receivable more quickly, which is typically a positive sign of strong liquidity and efficient working capital management. Conversely, a higher DSO suggests delays in collecting payments, which may impact cash flow and working capital.

Analyzing the trend, we see that the DSO was relatively stable around the mid-40s range in 2020 and 2021. However, in 2022, there was a significant increase in the DSO, peaking at 128.86 days in June 2022, followed by a decrease in the subsequent quarters. The DSO continued to fluctuate throughout 2023 and 2024, displaying some inconsistency in the company's collection process.

It is important for the company to monitor and manage its DSO effectively to ensure timely collection of accounts receivable, optimize cash flow, and maintain a healthy liquidity position. Further analysis and comparison with industry benchmarks may provide additional insights into ADMA Biologics Inc's credit and collection practices.