Vericel Corp Ord (VCEL)

Working capital 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
Total current assets US$ in thousands 205,631 186,866 158,462 123,560 111,655
Total current liabilities US$ in thousands 45,749 37,463 26,052 22,483 19,795
Working capital turnover 1.24 1.10 1.18 1.23 1.28

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $197,516K ÷ ($205,631K – $45,749K)
= 1.24

Vericel Corp's working capital turnover has fluctuated over the past five years. The company's working capital turnover ratio was 1.24 in 2023, showing an improvement compared to the previous year. This indicates that Vericel Corp generated $1.24 of revenue for every dollar of working capital invested in the business during 2023. However, the ratio was lower in 2022 at 1.10, suggesting a decrease in efficiency in utilizing working capital to generate sales.

In 2021, the working capital turnover ratio was 1.18, slightly below the 2023 figure but higher than the 2022 result. The year 2020 saw a ratio of 1.23, indicating a slight improvement in efficiency compared to 2021. The highest working capital turnover ratio among the past five years was in 2019, at 1.28, demonstrating strong efficiency in utilizing working capital to generate revenue.

Overall, Vericel Corp's working capital turnover has shown fluctuations over the years, with varying levels of efficiency in converting working capital into sales. It is important for the company to maintain an optimal balance in managing its working capital to support its operational needs and growth initiatives.