ADMA Biologics Inc (ADMA)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	329,182	348,461	276,253	207,673	127,091
Total stockholders’ equity	US$ in thousands	135,206	151,974	141,173	88,249	26,193
Financial leverage ratio		2.43	2.29	1.96	2.35	4.85

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $329,182K ÷ $135,206K
= 2.43

The financial leverage ratio of ADMA Biologics Inc has shown fluctuations over the past five years. In 2023, the ratio stands at 2.43, which indicates that for every $1 of equity, the company has $2.43 of debt. This suggests that the company heavily relies on debt financing to support its operations and growth.

Comparing to previous years, the financial leverage ratio has been trending upwards since 2021 when it was 1.96. This increase indicates that the company has been taking on more debt relative to its equity, which may pose higher financial risk as the company becomes more leveraged.

In particular, the ratio peaked at 4.85 in 2019, signaling a high level of debt compared to equity at that time. However, it decreased in the following years, showing some improvement in the company's leverage position.

Overall, the company's financial leverage ratio has been volatile, and investors should closely monitor it to assess the company's risk profile and ability to meet its financial obligations in the future.