ADMA Biologics Inc (ADMA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.76 | 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 |
| 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 |
ADMA Biologics Inc's liquidity ratios, namely the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term financial obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has shown fluctuations over the period reviewed. The ratio ranged from a high of 11.90 in March 2020 to a low of 5.04 in September 2022. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a favorable liquidity position. ADMA Biologics Inc maintained current ratios mostly above 1, indicating a strong ability to meet its short-term obligations throughout the period.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also fluctuated during the reviewed period. The quick ratio ranged from a high of 7.79 in March 2020 to a low of 1.26 in September 2022. A quick ratio above 1 is considered healthy, as it demonstrates the company's ability to meet short-term obligations without relying on selling inventory. ADMA Biologics Inc's quick ratios mostly remained above 1, although there were periods where the ratio dipped below this threshold.
The cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents, exhibited similar fluctuations. The cash ratio ranged from a high of 7.28 in March 2020 to a low of 0.79 in September 2022. A cash ratio above 1 implies that the company can fully cover its current liabilities with cash on hand. ADMA Biologics Inc maintained cash ratios above 1 for most of the period, indicating a strong ability to meet short-term obligations using its cash reserves.
Overall, the liquidity ratios suggest that ADMA Biologics Inc has generally maintained a solid liquidity position, with the ability to meet short-term obligations. However, the fluctuations in the ratios over time highlight the importance of continuous monitoring of liquidity levels to ensure continued financial stability.
Additional liquidity measure
| 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 conversion cycle | days | 307.44 | 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 |
The cash conversion cycle of ADMA Biologics Inc has shown fluctuations over the reported quarters.
Starting from March 31, 2020, with 407.54 days, the cash conversion cycle gradually increased to a peak of 653.14 days on June 30, 2021, illustrating a prolonged period for the company to convert its resources into cash.
Subsequently, there was a notable decrease in the cash conversion cycle to 307.44 days by December 31, 2024, signaling an improvement in the efficiency of managing cash flows, inventory, and accounts receivable. This reduction may be indicative of effective working capital management and streamlining operational processes.
Overall, monitoring the cash conversion cycle can provide insights into the company's liquidity, operational efficiency, and ability to turn investments into cash. ADMA Biologics Inc should aim to maintain this downward trend or stabilize at a reasonable level to ensure optimal financial health and sustainable growth.