ADMA Biologics Inc (ADMA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	51,352	86,522	51,089	55,921	26,752
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	49,806	39,267	30,378	19,947	14,028
Cash ratio		1.03	2.20	1.68	2.80	1.91

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($51,352K + $—K) ÷ $49,806K
= 1.03

The cash ratio for ADMA Biologics Inc has fluctuated over the past five years. In 2023, the cash ratio was 1.03, a decrease from the previous year's ratio of 2.20. This indicates that the company may have reduced liquidity and may have less cash available to cover its short-term obligations. Compared to the ratios in 2021 (1.68) and 2019 (1.91), the 2023 ratio is relatively lower.

On the other hand, the cash ratio of 2.80 in 2020 was the highest among the years presented, suggesting the company had a higher level of cash reserves relative to its current liabilities that year. This could indicate strong liquidity and a better ability to meet short-term financial obligations using cash.

Overall, the downward trend in the cash ratio from 2020 to 2023 may signify a potential decrease in the company's liquidity position and ability to cover short-term liabilities solely with cash on hand. Further analysis of the company's other financial indicators and liquidity management strategies would provide a more comprehensive understanding of its financial health.