ADMA Biologics Inc (ADMA)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	51,352	86,522	51,089	55,921	26,752
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	27,421	15,505	28,577	13,237	3,470
Total current liabilities	US$ in thousands	49,806	39,267	30,378	19,947	14,028
Quick ratio		1.58	2.60	2.62	3.47	2.15

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($51,352K + $—K + $27,421K) ÷ $49,806K
= 1.58

The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that the company has enough quick assets (assets that can be easily converted to cash) to cover its current liabilities.

In the case of ADMA Biologics Inc, the quick ratio has fluctuated over the past five years. In 2023, the quick ratio was 1.58, a decrease from the previous year's ratio of 2.60. This indicates that the company may have slightly less liquidity to cover its short-term obligations in 2023 compared to 2022.

Looking back further, in 2021 and 2020, the quick ratio was relatively stable at 2.62 and 3.47 respectively, indicating a strong liquidity position during those years. In contrast, in 2019, the quick ratio was 2.15, showing slightly lower liquidity compared to the following years.

Overall, while the 2023 quick ratio for ADMA Biologics Inc has decreased compared to the previous year, the company still appears to have an adequate level of quick assets to cover its short-term liabilities. However, it would be important to monitor this ratio in future periods to ensure the company maintains a healthy liquidity position.