ADMA Biologics Inc (ADMA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.44% | 22.89% | 1.45% | -45.17% | -34.60% |
| Operating profit margin | 8.38% | -25.55% | -72.12% | -153.75% | -141.14% |
| Pretax margin | -10.94% | -42.77% | -88.52% | -179.41% | -164.50% |
| Net profit margin | -10.94% | -42.77% | -88.52% | -179.41% | -164.50% |
The profitability ratios of ADMA Biologics Inc have shown significant improvement over the years. The gross profit margin has steadily increased from negative figures in 2019 and 2020 to 34.44% in 2023, indicating a better control over the cost of goods sold and potentially higher pricing power.
The operating profit margin has also shown a positive trend, moving from deeply negative values in 2019 and 2020 to 8.38% in 2023. This indicates that the company has been able to control its operating expenses more effectively, leading to higher operating profits relative to sales.
Despite the improvements in gross and operating profit margins, the pretax margin and net profit margin still remain negative in 2023. However, the magnitude of the losses has significantly decreased compared to 2019 and 2020, suggesting that the company is moving towards profitability. It is important for ADMA Biologics Inc to continue its efforts to reduce costs, increase revenues, and ultimately achieve positive profitability ratios in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.57% | -11.30% | -21.13% | -31.26% | -32.59% |
| Return on assets (ROA) | -8.58% | -18.91% | -25.94% | -36.48% | -37.99% |
| Return on total capital | -1.21% | -15.82% | -24.82% | -35.19% | -41.58% |
| Return on equity (ROE) | -20.89% | -43.37% | -50.75% | -85.84% | -184.32% |
ADMA Biologics Inc's profitability ratios have shown mixed performance over the past five years.
Firstly, looking at Operating ROA, the company has improved its performance from negative figures in 2019 and 2020 to positive values in 2021, 2022, and 2023. This indicates that the company has been more efficient in generating profits from its assets over the recent years.
Return on Assets (ROA) demonstrates the company's ability to generate profit from its total assets. Although the ROA has been negative throughout the period, it has shown a decreasing trend from around -38% in 2019 to -9% in 2023. This could reflect an improvement in the company's operational efficiency and profitability.
Return on Total Capital, which measures the return generated from all invested capital, also shows a decreasing trend from around -42% in 2019 to -1% in 2023. This indicates that the company has been able to generate relatively more profit compared to the total capital invested over the years.
Return on Equity (ROE) highlights the return generated for the shareholders. ADMA Biologics Inc has shown a significant improvement in ROE, moving from around -184% in 2019 to -21% in 2023. While the ROE is still negative, the improving trend suggests that the company's profitability in relation to shareholders' equity has been strengthening.
In conclusion, ADMA Biologics Inc has made progress in enhancing its profitability ratios, as indicated by the positive trends in Operating ROA, ROA, Return on Total Capital, and ROE over the period analyzed. Continued monitoring of these ratios will be essential to assess the company's financial performance and profitability sustainability.