ADMA Biologics Inc (ADMA)
Liquidity ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 6.12 |
| Quick ratio | 3.05 | 2.68 | 1.79 | 1.58 | 2.52 | 2.37 | 2.61 | 2.60 | 1.26 | 2.54 | 3.01 | 2.62 | 1.69 | 3.63 | 3.65 | 3.47 | 4.01 | 6.39 | 7.79 | 2.15 |
| Cash ratio | 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 | 1.91 |
ADMA Biologics Inc's liquidity ratios have exhibited fluctuations over the past few quarters. The current ratio, which measures the company's ability to meet short-term liabilities with its current assets, has ranged from 5.04 to 11.90. Generally, a current ratio above 1 indicates good short-term financial health, and ADMA Biologics Inc's current ratio has consistently been well above this threshold.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has varied between 1.26 and 7.79. A quick ratio above 1 is usually considered satisfactory, and ADMA Biologics Inc has maintained a robust quick ratio throughout the periods analyzed.
The cash ratio, which is the most conservative liquidity measure and focuses solely on cash and cash equivalents, has fluctuated between 0.79 and 7.28. A cash ratio above 1 indicates that a company can cover its short-term liabilities with its cash on hand, and ADMA Biologics Inc's cash ratio has generally been at levels that suggest a strong ability to meet immediate obligations.
Overall, ADMA Biologics Inc appears to have maintained a solid liquidity position based on its current, quick, and cash ratios over the analyzed periods, indicating the company's ability to meet its short-term obligations and fund its operations efficiently.
Additional liquidity measure
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 338.65 | 373.03 | 405.34 | 377.83 | 391.31 | 426.10 | 465.29 | 497.69 | 533.21 | 581.50 | 621.44 | 642.69 | 573.67 | 653.14 | 597.55 | 534.05 | 475.91 | 422.68 | 407.54 | 448.68 |
The cash conversion cycle of ADMA Biologics Inc has shown fluctuations over the periods specified. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash flows from sales. A shorter cash conversion cycle is generally seen as more favorable as it indicates the company is efficient in managing its working capital.
The trend for ADMA Biologics Inc's cash conversion cycle over the past years shows a general increase, indicating potential inefficiencies in managing its working capital. The company's cash conversion cycle has ranged from a low of 338.65 days to a high of 653.14 days in the most recent periods.
The increasing cash conversion cycle suggests that ADMA Biologics Inc may be taking longer to convert its investments in inventory into cash, which could potentially tie up capital and impact liquidity. This could be due to various factors such as slower sales turnover, longer inventory holding periods, or extended payment cycles from customers.
Overall, ADMA Biologics Inc should focus on optimizing its working capital management to reduce the cash conversion cycle and improve cash flows, which can positively impact the company's financial health and operational efficiency.