Vericel Corp Ord (VCEL)

Payables 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
Payables	US$ in thousands	22,347	16,930	9,016	6,755	6,345
Payables turnover		2.77	3.22	5.56	5.91	5.92

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $61,940K ÷ $22,347K
= 2.77

Vericel Corp's payables turnover ratio has shown a decreasing trend over the past five years. It has decreased from 5.92 in 2019 to 2.77 in 2023. This indicates that the company is taking longer to pay off its suppliers in recent years. A decreasing payables turnover ratio could suggest either a deterioration in supplier relationships or a potential cash flow issue within the company. Further investigation into the reasons behind this trend is advisable to understand the implications on Vericel Corp's working capital management and overall financial health. This analysis highlights the importance of monitoring payables turnover as it can provide insights into a company's efficiency in managing its accounts payable.