ADMA Biologics Inc (ADMA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 258,215 | 154,080 | 80,943 | 42,220 | 29,349 |
| Receivables | US$ in thousands | 27,421 | 15,505 | 28,577 | 13,237 | 3,470 |
| Receivables turnover | 9.42 | 9.94 | 2.83 | 3.19 | 8.46 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $258,215K ÷ $27,421K
= 9.42
The receivables turnover ratio for ADMA Biologics Inc has shown some fluctuations over the past five years. In 2023, the company's receivables turnover ratio was 9.42, indicating that its accounts receivable converted into sales approximately 9.42 times during the year. This represents a decrease from the previous year's ratio of 9.94.
The significant increase in 2022 from 2.83 in 2021 to 9.94 indicates that ADMA was more effective in collecting its outstanding receivables in 2022 and converting them into sales. However, this improvement was followed by a decrease in 2023.
In comparison, in 2020 and 2019, the receivables turnover ratios were 3.19 and 8.46, respectively. This demonstrates a general trend of variability in the efficiency of ADMA in collecting its accounts receivable over the years.
Overall, a higher receivables turnover ratio is generally favorable as it indicates that the company is collecting its outstanding receivables quickly. However, it is important to consider industry benchmarks and trends over time in evaluating the effectiveness of ADMA Biologics Inc in managing its accounts receivable.
Peer comparison
Dec 31, 2023