ADMA Biologics Inc (ADMA)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	169,273	118,815	79,769	61,291	39,504
Payables	US$ in thousands	15,660	13,229	12,429	11,074	9,175
Payables turnover		10.81	8.98	6.42	5.53	4.31

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $169,273K ÷ $15,660K
= 10.81

ADMA Biologics Inc's payables turnover has been on an increasing trend over the past five years, indicating that the company is managing its accounts payable more effectively. The payables turnover ratio has improved from 4.31 in 2019 to 10.81 in 2023. This suggests that the company is paying its suppliers more frequently, which could reflect efficient working capital management.

A higher payables turnover ratio typically indicates that a company is paying off its suppliers more quickly, which can be seen as a positive sign. It may also suggest that the company has good relationships with its suppliers, allowing for favorable payment terms.

Overall, the increasing trend in ADMA Biologics Inc's payables turnover ratio signals an improvement in the management of its accounts payable over the years, which could positively impact the company's liquidity and financial health.