ADMA Biologics Inc (ADMA)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	197,673	-28,239	-65,904	-71,648	-75,749
Total stockholders’ equity	US$ in thousands	349,018	135,206	151,974	141,173	88,249
ROE		56.64%	-20.89%	-43.37%	-50.75%	-85.84%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $197,673K ÷ $349,018K
= 56.64%

The return on equity (ROE) for ADMA Biologics Inc has shown significant fluctuations over the years.

- As of December 31, 2020, the ROE was -85.84%, indicating that the company's net income was not generating a favorable return relative to its shareholder equity.
- By December 31, 2021, there was a slight improvement in ROE to -50.75%, but the company was still struggling to generate positive returns for its shareholders.
- The trend continued to improve as of December 31, 2022, with the ROE decreasing further to -43.37%, although it remained negative.
- The performance notably improved as of December 31, 2023, with the ROE further decreasing to -20.89%, indicating progress in using shareholder equity more efficiently to generate returns.
- The most significant improvement was observed by December 31, 2024, where the ROE increased dramatically to 56.64%, suggesting a substantial turnaround in the company's ability to generate profits relative to its equity.

Overall, the trend in ROE for ADMA Biologics Inc reflects volatility and inconsistency in its profitability and efficiency in utilizing shareholder equity. The positive upturn in 2024 indicates a potentially positive trajectory for the company's financial performance, but caution should be exercised as the historical performance has been volatile.