Vericel Corp Ord (VCEL)

Payables 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
Cost of revenue (ttm)	US$ in thousands	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	37,571	35,615	34,429	33,134
Payables	US$ in thousands	22,347	15,051	14,401	11,125	16,930	8,113	9,684	7,750	9,016	5,575	8,134	8,826	6,755	6,475	4,535	6,400	6,345	5,281	5,250	6,201
Payables turnover		2.77	3.98	4.04	5.07	3.22	6.62	5.45	6.61	5.56	8.64	5.60	4.71	5.91	6.02	8.49	6.07	5.92	6.74	6.56	5.34

December 31, 2023 calculation

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

Vericel Corp's payables turnover has shown some fluctuation over the past eight quarters. The company's payables turnover ratio, which measures how efficiently the company pays its suppliers, ranged from a low of 2.77 in Q4 2023 to a high of 6.61 in Q1 2022.

The declining trend in payables turnover from Q1 2022 to Q4 2023 may suggest that Vericel Corp is taking longer to pay its suppliers compared to previous periods. This could be due to various factors such as changes in payment terms, increased reliance on trade credit, or slower processing of payables.

A payables turnover ratio below industry averages could indicate liquidity issues or potential strain on the company's relationship with suppliers. Conversely, a high payables turnover ratio could indicate that the company is efficiently managing its payables and taking advantage of credit terms without jeopardizing supplier relationships.

Overall, Vericel Corp's payables turnover ratio should be monitored over time to assess the company's payment efficiency and its impact on cash flow and working capital management.