Vericel Corp Ord (VCEL)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		3.74	5.32	5.40	5.42	4.06	5.69	5.76	6.27	5.13	7.09	6.15	5.74	4.25	5.49	6.05	5.94	4.17	6.97	4.83	5.04
DSO	days	97.49	68.64	67.64	67.39	89.80	64.16	63.41	58.23	71.13	51.52	59.32	63.63	85.84	66.54	60.28	61.48	87.55	52.39	75.61	72.41

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.74
= 97.49

Vericel Corp's Days of Sales Outstanding (DSO) is a measure of how long it takes the company to collect its accounts receivable. The trend in DSO over the past eight quarters shows fluctuations but overall consistency. In Q4 2023, the DSO increased to 107.84 days from 78.29 days in Q3 2023, indicating that it took the company longer to collect its receivables in this period. This increase may be a cause for concern as it suggests potential issues with accounts receivable management or customer payment delays.

Comparing Q4 2023 DSO to the same period a year ago (Q4 2022), where DSO was 103.35 days, there seems to be a slight deterioration in the efficiency of accounts receivable collection. However, the current DSO figure is still lower compared to Q1 2023 and Q2 2022, suggesting variations in collection efficiency across quarters.

Overall, a higher DSO indicates that Vericel Corp may be facing challenges in collecting payments from customers promptly. Management should closely monitor DSO trends to ensure timely collection of accounts receivable and maintain healthy cash flow levels.