ADMA Biologics Inc (ADMA)

Working capital 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
Total current assets	US$ in thousands	257,013	270,402	208,729	153,741	85,820
Total current liabilities	US$ in thousands	49,806	39,267	30,378	19,947	14,028
Working capital turnover		1.25	0.67	0.45	0.32	0.41

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $258,215K ÷ ($257,013K – $49,806K)
= 1.25

Working capital turnover measures the efficiency with which a company utilizes its working capital to generate sales revenue. A higher working capital turnover indicates better efficiency in using its current assets to generate sales.

The trend for ADMA Biologics Inc's working capital turnover over the past five years shows an inconsistent pattern. It increased from 0.41 in 2019 to 0.67 in 2022, reflecting an improvement in utilizing working capital to generate sales. However, there was a significant jump in 2023 to 1.25, indicating a substantial increase in the efficiency of working capital management compared to the previous year.

The improvement in working capital turnover from 2022 to 2023 suggests that ADMA Biologics Inc has managed its current assets more effectively to support its sales activities. This enhanced efficiency in utilizing working capital may be attributed to better inventory management, receivables collection, or payables management practices. Overall, the increasing trend in working capital turnover indicates a positive trend in the company's operational efficiency and financial performance.