ADMA Biologics Inc (ADMA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -3,212 | -46,625 | -58,591 | -63,763 | -39,286 |
| Long-term debt | US$ in thousands | 130,594 | 142,833 | 94,866 | 92,969 | 68,291 |
| Total stockholders’ equity | US$ in thousands | 135,206 | 151,974 | 141,173 | 88,249 | 26,193 |
| Return on total capital | -1.21% | -15.82% | -24.82% | -35.19% | -41.58% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-3,212K ÷ ($130,594K + $135,206K)
= -1.21%
ADMA Biologics Inc's return on total capital has shown a declining trend over the past five years, with the ratio decreasing from -41.58% in 2019 to -1.21% in 2023. This indicates that the company's ability to generate profits from its total invested capital has been weakening over time. The negative values suggest that the company's capital has not been effectively utilized to generate returns for its investors. ADMA Biologics Inc may need to assess and improve its capital allocation strategies to enhance its return on total capital in order to create more value for its stakeholders.
Peer comparison
Dec 31, 2023