ADMA Biologics Inc (ADMA)
Solvency ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.26 | 0.35 | 0.37 | 0.40 | 0.41 | 0.41 | 0.42 | 0.41 | 0.47 | 0.47 | 0.45 | 0.34 | 0.40 | 0.40 | 0.40 | 0.45 | 0.51 | 0.50 | 0.46 |
| Debt-to-capital ratio | 0.17 | 0.30 | 0.41 | 0.46 | 0.49 | 0.48 | 0.49 | 0.50 | 0.48 | 0.58 | 0.55 | 0.52 | 0.40 | 0.48 | 0.46 | 0.45 | 0.51 | 0.58 | 0.56 | 0.50 |
| Debt-to-equity ratio | 0.21 | 0.44 | 0.70 | 0.85 | 0.97 | 0.94 | 0.96 | 0.99 | 0.94 | 1.41 | 1.22 | 1.09 | 0.67 | 0.92 | 0.84 | 0.83 | 1.05 | 1.36 | 1.26 | 1.00 |
| Financial leverage ratio | 1.40 | 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 |
ADMA Biologics Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: The trend in this ratio shows a fluctuation over the years but has generally been within the acceptable range. The ratio was at its highest in September 2020 at 0.51 and has since decreased to 0.15 by December 2024, indicating that the company's reliance on debt as a source of financing relative to its total assets has decreased.
2. Debt-to-capital ratio: This ratio reflects the proportion of debt in the company's capital structure. ADMA Biologics Inc's debt-to-capital ratio has also shown variability over time, with a peak in September 2022 at 0.58 and a significant decline to 0.17 by December 2024. This indicates an improvement in the company's capital structure with a decreasing reliance on debt.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the company's leverage and financial risk. ADMA Biologics Inc's debt-to-equity ratio has shown a decreasing trend over the years, from 1.36 in September 2020 to 0.21 in December 2024. This suggests that the company has been reducing its debt relative to equity, which is a positive sign for investors and creditors.
4. Financial leverage ratio: This ratio provides insight into the company's financial risk and indicates the extent to which the company is using debt to finance its operations. ADMA Biologics Inc's financial leverage ratio has decreased from 2.66 in September 2020 to 1.40 in December 2024. This downward trend reflects a reduction in the company's financial risk associated with its debt levels.
Overall, the solvency ratios of ADMA Biologics Inc demonstrate a favorable trend towards a healthier financial position with decreasing reliance on debt financing and improved capital structure. These improvements suggest a strengthening of the company's ability to meet its long-term financial obligations and enhance its overall financial stability.
Coverage ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 146.51 | 16.59 | 6.44 | 1.97 | 0.86 | 0.05 | -0.70 | -1.15 | -2.04 | -2.76 | -3.54 | -4.38 | -4.47 | -4.86 | -4.89 | -5.08 | -5.42 | -4.78 | -4.55 | -4.42 |
Based on the provided interest coverage data for ADMA Biologics Inc, it is evident that the company experienced a significant improvement in its ability to cover interest expenses over the period from March 31, 2020, to December 31, 2024.
The interest coverage ratio, which represents the company's ability to meet its interest obligations from its operating income, was initially negative, indicating that ADMA Biologics Inc did not generate sufficient operating income to cover its interest expenses. However, the trend shows a consistent improvement in the interest coverage ratio over time.
From March 31, 2020, to December 31, 2024, the interest coverage ratio increased gradually from negative levels to a significantly positive ratio. The ratio turned positive in March 31, 2023, and continued to rise substantially, reaching a remarkably high figure of 146.51 by December 31, 2024.
The positive trend in the interest coverage ratio signifies that ADMA Biologics Inc has been able to enhance its financial performance and operational efficiency, resulting in a much stronger ability to meet its interest payment obligations. This improvement is a positive indicator of the company's financial health and may suggest better financial stability and a reduced risk of default on debt obligations.