ADMA Biologics Inc (ADMA)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 0.74 |
| Receivables turnover | 7.63 | 10.97 | 5.71 | 9.42 | 7.48 | 5.67 | 6.86 | 9.94 | 6.24 | 5.83 | 3.67 | 2.83 | 3.36 | 2.47 | 3.13 | 3.19 | 6.36 | 5.72 | 5.07 | 8.46 |
| 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 |
| Working capital turnover | 1.40 | 1.27 | 1.27 | 1.25 | 1.01 | 0.93 | 0.80 | 0.67 | 0.73 | 0.57 | 0.45 | 0.45 | 0.48 | 0.38 | 0.31 | 0.32 | 0.33 | 0.29 | 0.24 | 0.41 |
ADMA Biologics Inc's inventory turnover has shown a slight upward trend over the past few quarters, increasing to 1.14 as of September 30, 2024, indicating that the company is managing its inventory slightly more efficiently. However, the ratio is still relatively low, suggesting that the company may have excess inventory or slow-moving product lines.
The receivables turnover ratio fluctuates significantly, with higher values in some quarters and lower values in others. The ratio was 7.63 as of September 30, 2024, indicating that the company collected its receivables approximately 7.63 times during the year. The variability in this ratio may suggest changes in the company's credit policies or the nature of its customer base.
In terms of payables turnover, ADMA Biologics Inc has shown a consistent pattern of paying its suppliers, with the ratio ranging from 4.20 to 14.95 over the analyzed periods. The ratio was 12.20 as of September 30, 2024, indicating that the company pays its suppliers approximately 12.20 times per year. A higher payables turnover ratio generally indicates that the company is taking longer to pay its bills, which could strain supplier relationships.
The working capital turnover ratio has shown fluctuations over time, with a value of 1.40 as of September 30, 2024. This ratio measures how efficiently the company is using its working capital to generate sales. A higher ratio typically indicates better utilization of working capital. ADMA Biologics Inc's working capital turnover has been relatively stable, suggesting consistent management of working capital resources to support its business operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 320.75 | 368.83 | 377.96 | 372.83 | 366.93 | 390.87 | 447.43 | 501.60 | 561.61 | 562.76 | 580.84 | 570.70 | 548.03 | 538.57 | 552.18 | 485.56 | 472.60 | 409.36 | 406.70 | 490.30 |
| Days of sales outstanding (DSO) | days | 47.81 | 33.28 | 63.93 | 38.76 | 48.79 | 64.42 | 53.21 | 36.73 | 58.47 | 62.62 | 99.52 | 128.86 | 108.64 | 147.89 | 116.65 | 114.44 | 57.38 | 63.83 | 72.03 | 43.15 |
| 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 |
The Days of Inventory on Hand (DOH) for ADMA Biologics Inc have shown a fluctuating trend over the periods analyzed, ranging from a low of 320.75 days to a high of 580.84 days. A high DOH indicates that the company is holding onto inventory for an extended period, which may tie up funds and increase storage costs.
The Days of Sales Outstanding (DSO) also exhibit variability, with values ranging from 33.28 days to 147.89 days. A higher DSO suggests that the company is taking longer to collect revenues from its sales, potentially pointing to issues with credit policies or customer payment delays.
The Number of Days of Payables ranges from 24.41 days to 86.86 days, indicating the time it takes for ADMA Biologics Inc to pay its suppliers. A longer payment period can be advantageous as it allows the company to hold onto cash for longer periods, but it may strain supplier relationships if payment is significantly delayed.
Overall, ADMA Biologics Inc should aim to optimize its activity ratios by managing its inventory levels efficiently, improving collections on outstanding sales, and balancing its payment terms with suppliers to maintain healthy liquidity and working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.13 | 6.08 | 5.12 | 4.80 | 4.27 | 3.70 | 3.17 | 2.64 | 2.29 | 2.00 | 1.77 | 1.59 | 1.42 | 1.25 | 1.09 | 1.02 | 1.02 | 1.00 | 1.03 | 0.92 |
| Total asset turnover | 0.98 | 0.88 | 0.81 | 0.78 | 0.67 | 0.61 | 0.53 | 0.44 | 0.43 | 0.37 | 0.31 | 0.29 | 0.29 | 0.25 | 0.20 | 0.20 | 0.21 | 0.19 | 0.17 | 0.23 |
ADMA Biologics Inc's long-term activity ratios provide insights into the efficiency of the company in managing its assets to generate revenue.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio increased steadily from 0.92 in December 2019 to 7.13 in September 2024. This indicates that the company is generating more revenue for each dollar invested in fixed assets over the period.
- The significant improvement suggests that ADMA Biologics has been effectively utilizing its fixed assets to generate sales, which is a positive sign for the company's operational efficiency.
2. Total Asset Turnover:
- The total asset turnover ratio has shown an increasing trend, reaching 0.98 in September 2024 from 0.17 in December 2019. This indicates that the company is generating more revenue for each dollar invested in total assets.
- The rising trend also suggests that ADMA Biologics has been utilizing its total assets efficiently to generate sales, reflecting improved operational performance and potentially effective management of assets to drive revenue growth.
In conclusion, the increasing trends in both fixed asset turnover and total asset turnover ratios indicate that ADMA Biologics Inc has been improving its asset utilization efficiency and operational performance over the analyzed period, which could lead to enhanced financial performance and profitability in the long run.