ADMA Biologics Inc (ADMA)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	103,147	86,707	88,244	45,325	51,352	74,157	62,513	69,204	86,522	34,906	52,415	69,505	51,089	34,411	42,409	61,966	55,921	59,675	75,781	101,236
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		1.86	1.93	2.00	0.85	1.03	1.77	1.49	1.88	2.20	0.79	1.87	2.20	1.68	1.06	2.33	2.92	2.80	3.62	5.88	7.28

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($103,147K + $—K) ÷ $55,542K
= 1.86

The cash ratio of ADMA Biologics Inc has shown a declining trend over the past few years based on the provided data. The ratio stood at a relatively healthy 7.28 as of March 31, 2020, indicating that the company had $7.28 in cash and cash equivalents for every $1 of current liabilities. However, this ratio gradually decreased to 0.85 as of March 31, 2024.

A cash ratio below 1 implies that the company may not have sufficient liquid assets to cover its short-term financial obligations. ADMA Biologics Inc experienced a significant drop in its cash ratio from 3.62 as of September 30, 2020, to 0.79 as of September 30, 2022, which indicates potential liquidity challenges within that period. While the ratio slightly improved to 2.00 as of June 30, 2024, it is still considerably lower compared to the initial period.

The declining trend in the cash ratio may suggest that the company has been facing challenges in managing its liquidity position effectively. It is essential for ADMA Biologics Inc to closely monitor and improve its cash position to ensure it can meet its short-term obligations promptly and maintain financial stability.