Vericel Corp Ord (VCEL)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	77.12	76.91	87.01	99.38	106.91	113.73	110.15	102.55	97.37	98.93	103.82	90.54	85.48	94.45	79.82	68.41	66.22	69.93	50.76	44.76
Days of sales outstanding (DSO)	days	97.49	68.64	67.64	67.39	89.80	64.16	63.41	58.23	71.13	51.52	59.32	63.63	85.84	66.54	60.28	61.48	87.55	52.39	75.61	72.41
Number of days of payables	days	131.69	91.72	90.25	71.93	113.22	55.15	66.97	55.25	65.61	42.23	65.16	77.42	61.71	60.67	43.00	60.12	61.64	54.12	55.66	68.31
Cash conversion cycle	days	42.92	53.83	64.39	94.84	83.49	122.73	106.59	105.53	102.89	108.21	97.97	76.75	109.60	100.32	97.10	69.77	92.13	68.19	70.71	48.85

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.12 + 97.49 – 131.69
= 42.92

The cash conversion cycle of Vericel Corp has shown fluctuations over the past eight quarters. The company's performance improved in Q4 2023 with a decrease in the cash conversion cycle to 53.27 days compared to the previous quarter. This indicates that the company was able to efficiently convert its inventory and accounts receivable into cash during this period.

However, it is worth noting that the cash conversion cycle was significantly higher in Q1 2023 at 110.14 days, indicating that Vericel Corp took longer to convert its investments in inventory and accounts receivable into cash during that quarter. The company's efficiency in managing its working capital improved in the subsequent quarters of 2023, as evidenced by decreasing cash conversion cycle figures.

Comparing to the same quarter in the previous year, there has been an overall improvement in the cash conversion cycle in Q4 2023. This indicates that Vericel Corp has been more effective in managing its working capital and converting its assets into cash compared to the same period in the prior year.

Overall, the trend in the cash conversion cycle of Vericel Corp suggests that the company is becoming more efficient in managing its working capital and converting its investments into cash, which is a positive indicator of its financial performance and operational effectiveness.