ADMA Biologics Inc (ADMA)

Working capital turnover

		Dec 31, 2024	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
Revenue (ttm)	US$ in thousands	426,454	382,809	330,245	283,177	258,216	234,293	208,108	181,890	154,079	130,481	110,072	93,998	80,944	68,517	58,112	48,069	42,220	40,301	37,248	36,021
Total current assets	US$ in thousands	331,410	318,193	303,691	276,419	257,013	273,699	266,243	264,086	270,402	224,095	222,774	239,800	208,729	174,785	171,355	177,277	153,741	139,549	142,990	165,488
Total current liabilities	US$ in thousands	55,542	44,891	44,177	53,088	49,806	41,841	41,952	36,728	39,267	44,440	28,072	31,567	30,378	32,337	18,186	21,206	19,947	16,474	12,880	13,908
Working capital turnover		1.55	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

December 31, 2024 calculation

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

The working capital turnover ratio for ADMA Biologics Inc has shown a steady increase over the past few years, indicating improved efficiency in the company's working capital management. From March 31, 2020, to December 31, 2024, the ratio has increased from 0.24 to 1.55.

A higher working capital turnover ratio signifies that the company is generating sales revenue more efficiently with the available working capital. This improvement could be attributed to better inventory management, faster collections of accounts receivables, or more efficient payment of accounts payable.

The consistent upward trend in the working capital turnover ratio suggests that ADMA Biologics Inc has been able to optimize its working capital levels, leading to increased operational efficiency and potentially higher profitability. This reflects positively on the company's financial health and management's ability to efficiently utilize its resources.