Vericel Corp Ord (VCEL)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.75 | 4.73 | 3.41 | 3.75 | 4.27 | |
| DOH | days | 97.38 | 77.12 | 106.91 | 97.37 | 85.48 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.75
= 97.38
The days of inventory on hand (DOH) for Vericel Corp Ord has shown varying trends over the past five years. The company had 85.48 days of inventory on hand as of December 31, 2020, which increased to 97.37 days by the end of 2021. This trend continued with a further rise to 106.91 days on December 31, 2022. However, in the subsequent years, there was a decrease in DOH, with 77.12 days on December 31, 2023, and a slight increase to 97.38 days by December 31, 2024.
The increasing trend in DOH from 2020 to 2022 may indicate potential issues such as overstocking, slow-moving inventory, or inefficiencies in inventory management. On the other hand, the decrease in DOH in 2023 followed by a slight increase in 2024 could imply improvements in inventory turnover efficiency or adjustments in inventory management practices.
It is essential for Vericel Corp Ord to strike a balance in managing its inventory levels to ensure optimal utilization of resources while meeting customer demand effectively. Further analysis of factors impacting inventory levels and strategic inventory management decisions may be necessary to optimize working capital and operational efficiency.
Peer comparison
Dec 31, 2024