ADMA Biologics Inc (ADMA)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	195,502	177,944	171,639	169,273	162,260	151,071	133,774	118,814	105,881	94,743	87,440	79,769	76,009	67,569	62,232	61,291	53,872	49,933	46,928	39,504
Inventory	US$ in thousands	171,800	179,810	177,732	172,906	163,116	161,780	163,985	163,280	162,914	146,075	139,146	124,724	114,123	99,700	94,146	81,536	69,753	56,001	52,289	53,065
Inventory turnover		1.14	0.99	0.97	0.98	0.99	0.93	0.82	0.73	0.65	0.65	0.63	0.64	0.67	0.68	0.66	0.75	0.77	0.89	0.90	0.74

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $195,502K ÷ $171,800K
= 1.14

Inventory turnover measures how many times a company's inventory is sold and replaced during a specific period. A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.

In the case of ADMA Biologics Inc, the inventory turnover ratio has fluctuated over the past few years. In the latest period, ending September 30, 2024, the inventory turnover ratio was 1.14, indicating an increase from the previous quarter. This suggests that ADMA Biologics Inc was able to sell and replace its inventory more frequently during this period.

Looking at the trend over the past few quarters, the inventory turnover has shown some volatility but overall has remained relatively stable. The company's inventory turnover ratio has generally been below 1, implying that the company is not turning over its inventory as quickly as some of its peers in the industry.

It is important for ADMA Biologics Inc to monitor its inventory turnover ratio closely and work towards improving it to ensure efficient management of its inventory and working capital. This could involve better demand forecasting, inventory management practices, and streamlining supply chain operations to enhance sales and reduce carrying costs associated with holding excess inventory.