Vericel Corp Ord (VCEL)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 65,117 64,729 63,450 63,370 61,940 59,896 58,241 56,452 54,577 53,691 52,781 51,198 50,159 48,182 45,561 41,612 39,951 38,954 38,491 38,853
Inventory US$ in thousands 17,373 15,756 14,887 13,557 13,087 12,621 13,883 15,370 15,986 16,729 15,929 14,385 13,381 13,059 12,959 10,322 9,356 10,080 8,417 7,282
Inventory turnover 3.75 4.11 4.26 4.67 4.73 4.75 4.20 3.67 3.41 3.21 3.31 3.56 3.75 3.69 3.52 4.03 4.27 3.86 4.57 5.34

December 31, 2024 calculation

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

Vericel Corp Ord's inventory turnover has shown a consistent declining trend over the past few years, starting at 5.34 in March 2020 and gradually decreasing to 3.75 by December 2024. This indicates that the company is taking longer to sell its inventory.

A decreasing inventory turnover can suggest inefficiencies in managing inventory levels, potentially leading to excess or obsolete inventory. It may also indicate lower demand for the company's products or challenges in maintaining a streamlined supply chain.

While a declining inventory turnover ratio is generally unfavorable, it's important to consider industry norms and the company's specific circumstances when interpreting this metric. Vericel Corp Ord may need to assess its inventory management practices and sales strategies to improve efficiency and optimize its inventory turnover in order to enhance its overall financial performance.