ADMA Biologics Inc (ADMA)

Return on total capital

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	115,242	84,289	44,615	21,632	1,340	-16,662	-25,364	-39,366	-46,498	-51,618	-58,024	-58,373	-62,402	-61,766	-63,309	-64,915	-55,522	-50,771	-44,986	-41,424
Long-term debt	US$ in thousands	101,326	131,074	130,847	130,594	142,026	140,312	144,301	142,833	141,366	139,811	138,423	94,866	94,363	93,877	93,413	92,969	97,044	96,574	96,129	68,291
Total stockholders’ equity	US$ in thousands	231,890	188,269	153,706	135,206	151,437	146,762	145,655	151,974	100,385	114,401	126,933	141,173	102,780	111,594	112,504	88,249	71,376	76,879	96,336	26,193
Return on total capital		34.58%	26.39%	15.68%	8.14%	0.46%	-5.80%	-8.75%	-13.35%	-19.23%	-20.31%	-21.87%	-24.73%	-31.65%	-30.06%	-30.74%	-35.82%	-32.97%	-29.27%	-23.37%	-43.84%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $115,242K ÷ ($101,326K + $231,890K)
= 34.58%

ADMA Biologics Inc's return on total capital has shown a positive trend over the past few quarters. The company's return on total capital has improved significantly from a negative figure in December 2019 to 34.58% in September 2024. This indicates that the company has been efficiently utilizing its capital to generate profits and create value for its investors.

The steady improvement in return on total capital suggests that ADMA Biologics Inc has been effectively managing its assets and liabilities to generate returns for its stakeholders. Investors may view this trend positively as it demonstrates the company's ability to generate higher returns on the capital invested in the business.

It is important for ADMA Biologics Inc to sustain or further improve its return on total capital to ensure long-term profitability and growth. Management should continue to monitor and optimize the company's capital structure and operational efficiency to maintain this positive trend in the future.