Vericel Corp Ord (VCEL)

Vericel Corp Ord's liquidity ratios show a strong liquidity position over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally remained high, ranging from 4.23 to 6.08. This indicates that Vericel has ample current assets to meet its current obligations.

Similarly, the quick ratio, also known as the acid-test ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, is also robust, ranging from 2.31 to 3.97. This indicates that the company can meet its short-term obligations even if inventory is excluded from the calculation.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents to current liabilities, is relatively stable and strong, with values ranging from 2.31 to 3.97. This suggests that Vericel has sufficient cash on hand to cover its immediate liabilities.

Overall, Vericel Corp Ord's liquidity ratios indicate a strong ability to meet its short-term obligations and suggest that the company is well-positioned to handle its financial commitments efficiently.

---

Additional liquidity measure

Vericel Corp Ord's cash conversion cycle has shown some fluctuations over the past five years. It increased from 85.48 days in December 2020 to 106.91 days in December 2022, indicating a prolonged period for converting raw materials into cash receipts. However, there was a notable improvement in the cycle in December 2023, dropping to 77.12 days, which suggests efficiency in managing working capital. The cycle then increased slightly to 97.38 days by December 2024. Overall, Vericel Corp Ord should continue to monitor its cash conversion cycle to optimize its cash flow management and operational efficiency.