ADMA Biologics Inc (ADMA)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	206,901	169,273	118,815	79,769	61,291
Payables	US$ in thousands	20,219	15,660	13,229	12,429	11,074
Payables turnover		10.23	10.81	8.98	6.42	5.53

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $206,901K ÷ $20,219K
= 10.23

The payables turnover ratio for ADMA Biologics Inc has shown a consistent upward trend over the past five years. The ratio increased from 5.53 in December 31, 2020, to 10.23 in December 31, 2024. This indicates that the company is managing its accounts payable more efficiently and is paying off its creditors at a faster pace.

A higher payables turnover ratio suggests that the company is able to negotiate favorable credit terms with its suppliers, leading to a shorter payment cycle. This can positively impact the company's cash flow and working capital management.

ADMA Biologics Inc's improving payables turnover ratio reflects its ability to effectively manage its accounts payable, which is essential for maintaining good relationships with suppliers and optimizing overall financial performance. However, it is important for the company to ensure that this increase in payables turnover does not compromise its relationships with suppliers or its liquidity position.