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.