ADMA Biologics Inc (ADMA)

Debt-to-equity ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	72,337	130,594	142,833	94,866	92,969
Total stockholders’ equity	US$ in thousands	349,018	135,206	151,974	141,173	88,249
Debt-to-equity ratio		0.21	0.97	0.94	0.67	1.05

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $72,337K ÷ $349,018K
= 0.21

The debt-to-equity ratio of ADMA Biologics Inc has fluctuated over the past five years. As of December 31, 2020, the ratio stood at 1.05, indicating that the company had higher levels of debt relative to its equity. However, over the next few years, the ratio decreased, reaching 0.67 by December 31, 2021, suggesting an improvement in the company's financial leverage position.

Subsequently, the ratio increased slightly to 0.94 by December 31, 2022, and then to 0.97 by December 31, 2023. These ratios still indicate that ADMA Biologics Inc is relying more on debt financing than equity, albeit to a lesser extent compared to earlier years.

Notably, by December 31, 2024, the debt-to-equity ratio dropped significantly to 0.21, signaling a substantial decrease in the company's debt relative to its equity. This may reflect a strategic shift towards a more balanced capital structure or possibly a reduction in debt levels.

Overall, the trend in the debt-to-equity ratio for ADMA Biologics Inc shows variability but ends on a notably positive note with a much lower ratio in 2024, indicating potential improvements in the company's financial stability and risk management.