ADMA Biologics Inc (ADMA)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	21,632	-39,365	-58,374	-64,915	-41,424
Total assets	US$ in thousands	329,182	348,461	276,253	207,673	127,091
Operating ROA		6.57%	-11.30%	-21.13%	-31.26%	-32.59%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $21,632K ÷ $329,182K
= 6.57%

Operating Return on Assets (Operating ROA) is a financial ratio that indicates how efficient a company is at generating operating income from its assets. A higher operating ROA typically signifies better operational performance and asset utilization.

In the case of ADMA Biologics Inc, the trend in Operating ROA over the past five years has shown significant variability. The company experienced a negative Operating ROA in 2019 (-32.59%), 2020 (-31.26%), and 2021 (-21.13%), indicating that it struggled to generate operating income relative to its asset base during those years.

However, there was a notable improvement in the company's Operating ROA in 2022 (-11.30%), suggesting some progress in operational efficiency and asset utilization. This positive trend continued in 2023 with the Operating ROA reaching 6.57%, indicating a further improvement in the company's ability to generate operating income from its assets.

Overall, the recent positive turnaround in ADMA Biologics Inc's Operating ROA is a promising sign of enhanced operational efficiency and asset performance. Monitoring this ratio in future periods will be crucial to assess the company's sustained operational improvement and ability to generate returns from its asset base.