ADMA Biologics Inc (ADMA)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	130,594	142,833	94,866	92,969	68,291
Total assets	US$ in thousands	329,182	348,461	276,253	207,673	127,091
Debt-to-assets ratio		0.40	0.41	0.34	0.45	0.54

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $130,594K ÷ $329,182K
= 0.40

The debt-to-assets ratio measures the proportion of a company's assets that are financed by debt. For ADMA Biologics Inc, the trend in the debt-to-assets ratio over the past five years has shown fluctuations. In 2019, the ratio was highest at 0.54, indicating that 54% of the company's assets were financed by debt. This suggests a relatively high reliance on debt to fund the company's operations and investments.

Subsequently, there was a decline in the ratio to 0.45 in 2020, followed by a further decrease to 0.34 in 2021. These decreases may indicate improvements in the company's financial position, as a lower ratio suggests a lower proportion of debt funding its assets.

However, in 2022 and 2023, the ratio increased slightly to 0.41 and 0.40, respectively. While the slight increase in the ratio over the past two years suggests a higher level of debt relative to assets, it is important to assess the absolute level of debt and the company's ability to manage it.

Overall, the trend of the debt-to-assets ratio for ADMA Biologics Inc indicates some fluctuations in the levels of debt financing over the years, with a peak in 2019 and subsequent improvements followed by a slight uptick in recent years. Analysis of this ratio should be complemented with a deeper examination of the company's financial health and debt management strategies.