Vericel Corp Ord (VCEL)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	65,117	61,940	54,577	50,159	39,951
Inventory	US$ in thousands	17,373	13,087	15,986	13,381	9,356
Inventory turnover		3.75	4.73	3.41	3.75	4.27

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $65,117K ÷ $17,373K
= 3.75

Vericel Corp Ord's inventory turnover has fluctuated over the past five years. In 2020, the company had an inventory turnover ratio of 4.27 times, indicating that its inventory was sold and replaced approximately 4.27 times during that year.

However, in the following years, the inventory turnover ratio decreased to 3.75 in 2021 and remained consistent in 2024. This decline suggests that the company took longer to sell through its inventory in those years compared to 2020.

Furthermore, in 2022, the inventory turnover ratio dropped further to 3.41, indicating a potential inventory management issue or a slower rate of inventory sales. This may have implications on the company's cash flow and profitability if excess inventory ties up working capital.

On a positive note, in 2023, the inventory turnover ratio increased to 4.73, which may indicate a more efficient utilization of inventory or an increase in sales volume.

Overall, Vericel Corp Ord's inventory turnover ratios reflect varying degrees of efficiency in managing its inventory. Further analysis of the company's industry benchmarks and trends would provide a more comprehensive understanding of its inventory management performance.