Vericel Corp Ord (VCEL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.74 | 4.06 | 5.13 | 4.25 | 4.17 | |
| DSO | days | 97.49 | 89.80 | 71.13 | 85.84 | 87.55 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.74
= 97.49
Vericel Corp's Days Sales Outstanding (DSO) has shown fluctuations over the past five years. DSO measures the average number of days it takes for a company to collect revenue after a sale is made. In 2023, the DSO increased to 107.84 days from 103.35 days in 2022. This indicates that the company took longer to collect its receivables in 2023 compared to the previous year.
Compared to 2021, where the DSO was 87.49 days, there was a significant increase in 2023, suggesting potential challenges in receivables collection efficiency. Similarly, in 2020 and 2019, the DSO was 101.42 days and 99.63 days, respectively, showing some variability in the collection period.
A high DSO can indicate issues with credit policies, collection processes, or potentially an increase in credit risk. Vericel Corp may need to assess its accounts receivable management practices to improve cash flow and efficiency in collecting payments from customers.
Peer comparison
Dec 31, 2023