ADMA Biologics Inc (ADMA)

Current 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
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
Current ratio		5.97	7.09	6.87	5.21	5.16	6.54	6.35	7.19	6.89	5.04	7.94	7.60	6.87	5.41	9.42	8.36	7.71	8.47	11.10	11.90

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $331,410K ÷ $55,542K
= 5.97

The current ratio of ADMA Biologics Inc has fluctuated over the past few years, indicating changes in the company's liquidity position. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. ADMA Biologics Inc experienced a significant decline in its current ratio from a high of 11.90 on March 31, 2020, to a low of 5.04 on September 30, 2022, before gradually improving to 7.09 on September 30, 2024.

A current ratio above 1 indicates that a company can cover its short-term obligations with its current assets. Therefore, ADMA Biologics Inc has generally maintained a current ratio above 1 throughout the period, suggesting that the company has had sufficient current assets to meet its short-term liabilities.

However, a declining current ratio over time could signal potential liquidity challenges or inefficiencies in managing current assets and liabilities. Investors and creditors may view a decreasing current ratio with caution, as it may indicate a weakening financial position. It is important for ADMA Biologics Inc to continue monitoring its current ratio and implement strategies to maintain a healthy liquidity position.