ADMA Biologics Inc (ADMA)

Financial leverage ratio

		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
Total assets	US$ in thousands	390,618	376,399	350,875	329,182	348,997	343,027	340,788	348,461	300,558	296,932	308,032	276,253	238,640	232,814	235,667	207,673	189,976	191,542	210,524	127,091
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
Financial leverage ratio		1.68	2.00	2.28	2.43	2.30	2.34	2.34	2.29	2.99	2.60	2.43	1.96	2.32	2.09	2.09	2.35	2.66	2.49	2.19	4.85

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $390,618K ÷ $231,890K
= 1.68

The financial leverage ratio of ADMA Biologics Inc has shown fluctuations over the recent quarters, indicating changes in the company's capital structure and debt levels. The ratio peaked at 4.85 in Q4 2019, indicating a high level of financial leverage at that time. Since then, the ratio has ranged between 1.68 and 2.99, with the most recent ratio standing at 1.68 as of September 30, 2024.

A financial leverage ratio above 1 suggests that the company is using debt to finance its operations and growth. Generally, a higher ratio indicates a higher level of financial risk and reliance on debt financing. The decreasing trend in the ratio from Q4 2019 to Q3 2024 suggests a reduction in the company's financial leverage over time, potentially indicating a more conservative approach to capital structure and debt management.

It is important for investors and stakeholders to monitor the financial leverage ratio, as excessive leverage can increase the company's financial risks, including potential difficulties in servicing debt obligations. ADMA Biologics Inc's decreasing trend in the financial leverage ratio may be a positive sign of improved financial health and lower risk exposure related to debt financing.