Vericel Corp Ord (VCEL)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	61,940	54,577	50,159	39,951	37,571
Inventory	US$ in thousands	13,087	15,986	13,381	9,356	6,816
Inventory turnover		4.73	3.41	3.75	4.27	5.51

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $61,940K ÷ $13,087K
= 4.73

Vericel Corp's inventory turnover has shown variability over the past five years. The trend indicates fluctuations in the efficiency of managing inventory. In 2023, the inventory turnover ratio improved to 4.73, reflecting the company's ability to convert its inventory into sales more quickly compared to the previous year. However, this ratio is still lower than the high of 5.51 in 2019.

While the inventory turnover ratio decreased in 2022 and 2021, it remained above 3, suggesting that the company was able to sell its inventory multiple times during the year. This implies a reasonably efficient inventory management process during those years. The highest ratio in 2019 indicates that Vericel Corp was able to turn over its inventory at a relatively faster rate at that time.

Overall, Vericel Corp's inventory turnover ratio has shown some inconsistency, indicating potential fluctuations in sales and inventory management efficiency over the years. It would be beneficial for the company to analyze the factors contributing to these fluctuations and consider strategies to optimize inventory turnover for sustained operational efficiency.