Vericel Corp Ord (VCEL)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.73	3.41	3.75	4.27	5.51
DOH	days	77.12	106.91	97.37	85.48	66.22

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.73
= 77.12

Vericel Corp's days of inventory on hand (DOH) has shown some fluctuations over the past five years. The company held inventory for an average of 77.12 days as of December 31, 2023, which was a decrease from 106.91 days in 2022. This reduction indicates that the company was able to manage its inventory more efficiently in 2023 compared to the previous year.

Looking further back, the trend in Vericel Corp's DOH reveals some variability. In 2021, the company had 97.37 days of inventory on hand, which was lower than the 85.48 days recorded in 2020. However, inventory levels were higher in 2021 compared to 2020, indicating a possible buildup of inventory during that period.

In 2019, Vericel Corp had the lowest DOH at 66.22 days, suggesting a more efficient inventory management compared to the following years. It is important to note that a lower DOH generally indicates that the company is selling its products quickly and efficiently, while a higher DOH may suggest excess or slow-moving inventory.

Overall, Vericel Corp's DOH has shown some variability over the past five years, with fluctuations indicating changes in the company's inventory management practices and potentially its sales patterns. Further analysis of the underlying reasons behind these fluctuations could provide insights into the company's operational efficiency and financial performance.