ADMA Biologics Inc (ADMA)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	138,983	-3,212	-46,625	-58,591	-63,763
Interest expense	US$ in thousands	951	25,027	19,279	13,057	11,985
Interest coverage		146.14	-0.13	-2.42	-4.49	-5.32

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $138,983K ÷ $951K
= 146.14

According to the data provided, the interest coverage ratio for ADMA Biologics Inc has shown significant fluctuations over the years.

For the years ending December 31, 2020, 2021, and 2022, the company had negative interest coverage ratios of -5.32, -4.49, and -2.42 respectively. These negative figures indicate that the company's operating income was not sufficient to cover its interest expenses during those years. This could be a cause for concern as it suggests that the company may have been in a financially strained position during this period.

However, there was a noteworthy improvement in the interest coverage ratio for the year ending December 31, 2023, where the ratio was only -0.13. Although still negative, this suggests a move towards a better situation where the company's operating income was closer to covering its interest expenses.

The most recent data for the year ending December 31, 2024, shows a substantial improvement in the interest coverage ratio, with a value of 146.14. This high ratio is a positive sign as it indicates that the company's operating income substantially exceeded its interest expenses, showcasing a healthier financial position.

In conclusion, the interest coverage ratio for ADMA Biologics Inc has shown improvement over the years, moving from negative values to a strongly positive ratio in the most recent year. This trend indicates progress towards a more stable and sustainable financial position for the company.