ADMA Biologics Inc (ADMA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.40 | 0.41 | 0.34 | 0.45 |
| Debt-to-capital ratio | 0.17 | 0.49 | 0.48 | 0.40 | 0.51 |
| Debt-to-equity ratio | 0.21 | 0.97 | 0.94 | 0.67 | 1.05 |
| Financial leverage ratio | 1.40 | 2.43 | 2.29 | 1.96 | 2.35 |
ADMA Biologics Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has shown a decreasing trend from 0.45 in 2020 to 0.15 in 2024, suggesting that the proportion of the company's assets financed by debt has decreased over the years. Similarly, the Debt-to-capital ratio and the Debt-to-equity ratio have also decreased over the same period, indicating improved solvency and financial stability.
Moreover, the Financial leverage ratio has shown a declining trend from 2.35 in 2020 to 1.40 in 2024, indicating a reduction in the company's reliance on debt to finance its operations. Overall, these solvency ratios suggest that ADMA Biologics Inc has been effectively managing its debt levels and enhancing its financial strength and stability over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 146.14 | -0.13 | -2.42 | -4.49 | -5.32 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest obligations.
For ADMA Biologics Inc:
- As of December 31, 2020, the interest coverage ratio was -5.32, indicating that the company's operating income was insufficient to cover its interest expenses.
- By December 31, 2021, the ratio slightly improved but remained negative at -4.49, showing continued challenges in meeting interest payments.
- The ratio further improved by December 31, 2022, but remained low at -2.42, signaling ongoing difficulty in generating enough operating income to cover interest costs.
- Subsequently, as of December 31, 2023, the interest coverage ratio improved significantly to -0.13, approaching breakeven but still reflecting a precarious financial position.
- Finally, as of December 31, 2024, the interest coverage ratio surged to 146.14, indicating a drastic improvement in the company's ability to cover interest expenses, potentially due to increased operating income or lower interest costs.
Overall, ADMA Biologics Inc exhibited a concerning trend of negative interest coverage ratios from 2020 to 2023, implying financial strain. However, the significant improvement in 2024 suggests a positive turnaround in the company's financial health, with a much-improved ability to meet interest obligations.