ADMA Biologics Inc (ADMA)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	206,901	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
Inventory	US$ in thousands	170,235	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
Inventory turnover		1.22	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $206,901K ÷ $170,235K
= 1.22

The inventory turnover ratio measures how effectively a company manages its inventory by indicating how many times the company sells and replaces its inventory during a specific period. A higher inventory turnover ratio generally signifies that a company is selling its products quickly and efficiently.

Analyzing the inventory turnover data of ADMA Biologics Inc from March 31, 2020, to December 31, 2024, we observe a fluctuating trend. The inventory turnover ratio started at 0.90 in March 2020, slightly decreased to 0.89 in June 2020, and further declined to 0.75 by December 2020. The ratio continued to decrease throughout the first half of 2021, reaching 0.66 in March 2021.

Subsequently, there was a slight improvement in inventory turnover ratios during the second half of 2021, with the ratio increasing to 0.67 in September 2021 and 0.64 by December 2021. This trend continued into 2022, with the ratio gradually rising from 0.63 in March to 0.65 by June and September 2022.

By December 2022, there was a notable increase in inventory turnover to 0.73, marking a significant improvement in managing inventory efficiency. This positive trend continued into the following years, with the ratio reaching 1.22 by December 31, 2024, indicating that ADMA Biologics Inc significantly improved its inventory management and sales efficiency.

Overall, the inventory turnover ratio of ADMA Biologics Inc showed fluctuations in the initial years but demonstrated a consistent improvement in managing its inventory efficiently and effectively in the later years, culminating in a robust ratio of 1.22 by December 31, 2024.