ADMA Biologics Inc (ADMA)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 426,454 258,215 154,080 80,943 42,220
Total current assets US$ in thousands 331,410 257,013 270,402 208,729 153,741
Total current liabilities US$ in thousands 55,542 49,806 39,267 30,378 19,947
Working capital turnover 1.55 1.25 0.67 0.45 0.32

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $426,454K ÷ ($331,410K – $55,542K)
= 1.55

The working capital turnover for ADMA Biologics Inc has shown a positive trend over the past five years. It increased from 0.32 in December 31, 2020, to 1.55 in December 31, 2024. This indicates that the company has been effectively utilizing its working capital to generate revenue.

A working capital turnover ratio of 1.55 in December 31, 2024, means that for each dollar of working capital the company had, it generated $1.55 of revenue during that period. This suggests efficient management of working capital and a productive use of resources to drive sales.

The rising trend in the working capital turnover ratio reflects improved efficiency in the company's operations, as it has been able to generate more revenue using the same amount of working capital. This trend is generally seen as a positive signal of effective working capital management and operational performance for ADMA Biologics Inc.