Vericel Corp Ord (VCEL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 197,516 | 164,365 | 156,184 | 124,179 | 117,850 |
| Receivables | US$ in thousands | 52,756 | 40,439 | 30,437 | 29,204 | 28,268 |
| Receivables turnover | 3.74 | 4.06 | 5.13 | 4.25 | 4.17 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $197,516K ÷ $52,756K
= 3.74
The receivables turnover of Vericel Corp has shown a decreasing trend over the past five years, from 4.17 in 2021 to 3.38 in 2023. This indicates that the company is collecting its accounts receivable less frequently in recent years. A lower receivables turnover may suggest that the company is extending more lenient credit terms to customers or experiencing difficulties in collecting payments promptly.
It is important to further investigate the reasons behind this decreasing trend in receivables turnover to assess the effectiveness of Vericel Corp's credit and collection policies. Analyzing the company's industry average and comparing it to competitors can provide additional insights into the company's performance in managing its accounts receivable. Additionally, monitoring changes in the composition of the customer base and economic conditions could help in evaluating the impact on receivables turnover.
Peer comparison
Dec 31, 2023