Vericel Corp Ord (VCEL)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 237,224 197,516 164,365 156,184 124,179
Total current assets US$ in thousands 212,777 205,631 186,866 158,462 123,560
Total current liabilities US$ in thousands 50,286 45,749 37,463 26,052 22,483
Working capital turnover 1.46 1.24 1.10 1.18 1.23

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $237,224K ÷ ($212,777K – $50,286K)
= 1.46

Vericel Corp Ord's working capital turnover has fluctuated over the past five years. It decreased from 1.23 in December 2020 to 1.18 in December 2021, showing a slight decline in efficiency in utilizing its working capital. This trend continued as the working capital turnover further decreased to 1.10 in December 2022. However, in December 2023, there was a notable improvement as the working capital turnover increased to 1.24, indicating better utilization of working capital. This positive trend continued into December 2024, reaching a higher working capital turnover of 1.46, reflecting increased efficiency in managing its working capital during that period. Overall, the company's ability to generate revenue from its working capital has shown both fluctuations and improvements over the years, with a significant improvement in the most recent year.