ADMA Biologics Inc (ADMA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	258,215	154,080	80,943	42,220	29,349
Property, plant and equipment	US$ in thousands	53,835	58,261	50,935	41,593	31,741
Fixed asset turnover		4.80	2.64	1.59	1.02	0.92

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $258,215K ÷ $53,835K
= 4.80

Fixed asset turnover is an important financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. ADMA Biologics Inc's fixed asset turnover has shown a consistent increasing trend over the past five years, starting at 0.92 in 2019 and reaching 4.80 in 2023. This indicates that the company has been utilizing its fixed assets more efficiently to generate sales revenue.

A high fixed asset turnover ratio like ADMA Biologics Inc's in 2023 suggests that the company is generating significant revenue relative to the value of its fixed assets. This could be a positive indicator of operational efficiency and effective utilization of assets within the business.

However, it is important to analyze this ratio in conjunction with other financial metrics and industry benchmarks to get a comprehensive understanding of the company's overall performance and efficiency in managing its fixed assets.