ADMA Biologics Inc (ADMA)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 10.81 | 8.98 | 6.42 | 5.53 | 4.31 | |
| Number of days of payables | days | 33.77 | 40.64 | 56.87 | 65.95 | 84.77 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.81
= 33.77
The number of days of payables for ADMA Biologics Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to manage its payables.
In 2019, the number of days of payables was at 84.77 days, which decreased to 65.95 days in 2020, 56.87 days in 2021, further down to 40.64 days in 2022, and eventually to 33.77 days in 2023.
This trend suggests that ADMA Biologics Inc has been able to negotiate more favorable payment terms with its suppliers, allowing the company to hold onto its cash for a longer period before settling its payables. This can improve the company's liquidity position and overall financial health by providing more working capital to fund operations or invest in growth opportunities.
Peer comparison
Dec 31, 2023