Vericel Corp Ord (VCEL)

Short-term

Turnover ratios

Vericel Corp Ord's inventory turnover ratio has shown a slight decline over the years, decreasing from 4.27 in 2020 to 3.75 in 2024. This suggests that the company is able to sell its inventory at a slower rate in recent years.

The receivables turnover ratio data is not available for the years indicated, which indicates that the company may not provide credit sales to its customers or that credit sales information is not disclosed.

Similarly, the payables turnover ratio data is also not provided, indicating a lack of insight into how quickly the company is paying its suppliers, which could impact its cash flow management.

The working capital turnover ratio, on the other hand, shows a fluctuating trend from 1.23 in 2020 to 1.46 in 2024. This indicates that the company is generating sales relative to its working capital at a varying pace over the years, with an increasing trend from 2020 to 2024.

Overall, based on the activity ratios, it is essential for Vericel Corp Ord to analyze its inventory management efficiency, credit policies, supplier payment strategies, and working capital utilization to optimize its operational performance and financial health.

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Average number of days

Vericel Corp Ord's activity ratios indicate how efficiently the company manages its operations and resources.

1. Days of Inventory on Hand (DOH): The trend in the DOH ratio shows an increase from 85.48 days in 2020 to 97.38 days in 2024. This implies that, on average, it took the company longer to sell its inventory over the years. A higher DOH ratio may indicate slower sales, overstocking, or potential obsolescence of inventory.

2. Days of Sales Outstanding (DSO): The DSO data provided are not available for analysis, suggesting a lack of visibility regarding the collection period for sales. The absence of DSO information makes it challenging to assess the effectiveness of the company in collecting its accounts receivables promptly.

3. Number of Days of Payables: The details about the number of days of payables were not provided, limiting the analysis of how long the company takes to pay off its suppliers. A longer payment period may indicate better cash flow management, but it could also be a sign of strained supplier relationships if stretched too far.

In summary, while the inventory turnover of Vericel Corp Ord appeared to slow down over the years based on the DOH ratios, a complete assessment of the company's operational efficiency would require additional information on DSO and days of payables. These ratios collectively provide insights into the company's ability to manage inventory, collect receivables, and settle payables effectively.

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Long-term

Vericel Corp Ord's long-term activity ratios provide valuable insights into the efficiency of the company in managing its assets over time. The fixed asset turnover ratio, which measures how efficiently the company generates revenue from its fixed assets, has shown a positive trend from 2.15 in 2020 to 2.86 in 2022. This increase indicates that the company has been able to utilize its fixed assets more efficiently to generate sales.

However, it is worth noting that there is missing data for the fixed asset turnover ratio for 2023 and 2024, which may indicate a lack of available information for these periods. This could potentially limit the comparability and completeness of the analysis for those years.

In terms of total asset turnover, which assesses how well the company generates sales from all its assets, the ratio has fluctuated slightly over the years. It was at 0.60 in both 2020 and 2022, with a slight increase to 0.64 in 2021, and then a decline to 0.55 in 2024. This pattern suggests that Vericel Corp Ord may have experienced some variability in how efficiently it is utilizing its total assets to generate revenue.

Overall, while the fixed asset turnover ratio indicates an improvement in asset utilization, the total asset turnover ratio shows some inconsistency. Further analysis and examination of the company's asset management practices and operational efficiency would be beneficial to fully assess its long-term activity performance.