ADMA Biologics Inc (ADMA)

Number of days of payables

		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
Payables turnover		12.20	12.55	9.99	10.81	14.95	12.50	10.33	8.98	4.20	8.32	6.19	6.42	4.40	10.96	5.12	5.53	6.75	7.23	5.13	4.31
Number of days of payables	days	29.91	29.08	36.55	33.77	24.41	29.20	35.35	40.64	86.86	43.87	58.92	56.87	82.99	33.31	71.28	65.95	54.07	50.51	71.18	84.77

September 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.20
= 29.91

The analysis of ADMA Biologics Inc's number of days of payables over the past few quarters reveals fluctuations in the company's payment terms to its suppliers. The number of days of payables has ranged from a low of 24.41 days to a high of 86.86 days, indicating varying levels of efficiency in managing payables.

In recent quarters, the number of days of payables has generally been in the range of 29 to 37 days, suggesting that ADMA Biologics has been able to maintain a relatively stable payment period with its suppliers. However, there was a significant spike to 86.86 days in the third quarter of 2022, which may warrant further investigation to determine the reasons behind the extended payment period.

Overall, a lower number of days of payables indicates that the company is paying its suppliers more quickly, which could indicate strong cash flow management. On the other hand, a higher number of days of payables may signify liquidity challenges or negotiation leverage with suppliers.

It is important for stakeholders to monitor this metric closely to assess ADMA Biologics' financial health, cash flow management, and relationships with suppliers. Additionally, management should continue to evaluate and optimize payables processes to maintain an optimal balance between maximizing cash flow and maintaining positive supplier relationships.