Vericel Corp Ord (VCEL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	197,516	185,214	178,184	169,308	164,365	159,262	155,217	157,690	156,184	153,822	151,574	132,069	124,179	118,340	116,581	122,718	117,850	109,795	101,780	94,640
Property, plant and equipment	US$ in thousands	41,635	30,207	23,390	18,169	15,800	15,872	15,864	14,386	13,235	11,736	10,498	8,974	7,522	6,995	6,911	31,919	6,996	7,190	6,963	6,445
Fixed asset turnover		4.74	6.13	7.62	9.32	10.40	10.03	9.78	10.96	11.80	13.11	14.44	14.72	16.51	16.92	16.87	3.84	16.85	15.27	14.62	14.68

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $197,516K ÷ $41,635K
= 4.74

Vericel Corp's fixed asset turnover has shown fluctuating trends over the past eight quarters. The ratio has ranged from a low of 4.74 in Q4 2023 to a high of 10.91 in Q1 2022. Generally, a higher fixed asset turnover indicates that the company is generating more revenue relative to its investment in fixed assets, reflecting efficient asset utilization.

The upward trend from Q1 2023 to Q4 2022 suggests improved efficiency in utilizing fixed assets to generate sales during that period. However, the significant drop in Q4 2023 may indicate a potential decrease in sales relative to fixed assets invested, which could warrant further investigation into the company's operational performance and asset management strategies.

Overall, Vericel Corp's fixed asset turnover ratio shows variability, and it would be important to monitor future trends and compare the ratio with industry benchmarks to assess the company's efficiency in utilizing fixed assets for revenue generation.