ADMA Biologics Inc (ADMA)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Current ratio		5.16	6.89	6.87	7.71	6.12

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $257,013K ÷ $49,806K
= 5.16

The current ratio of ADMA Biologics Inc has shown a fluctuating trend over the past five years. The ratio indicates the company's ability to meet its short-term obligations with its current assets.

In 2023, the current ratio stood at 5.16, which was lower compared to the previous two years where it was above 6. This may suggest a potential decrease in the company's short-term liquidity compared to the prior period. However, a current ratio of 5.16 still indicates that ADMA Biologics Inc has more than enough current assets to cover its current liabilities.

It is important to note that while a higher current ratio is generally preferred as it signifies stronger short-term liquidity, a ratio that is too high may indicate an inefficient use of assets. Therefore, ADMA Biologics Inc may need to monitor its current ratio closely to ensure optimal balance between liquidity and asset utilization.