Vericel Corp Ord (VCEL)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 97.38 | 88.85 | 85.64 | 78.09 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 97.38 | 88.85 | 85.64 | 78.09 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 97.38 + — – —
= 97.38
Vericel Corp Ord's cash conversion cycle has shown fluctuations over the past years. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash flows from sales.
From March 31, 2020, to June 30, 2020, the cash conversion cycle increased from 68.41 days to 79.82 days, indicating a lengthening period for the company to convert its inventory investments into cash. This trend continued through the following quarters until December 31, 2020, when the cycle peaked at 85.48 days.
Subsequently, there was a slight improvement in the cash conversion cycle from March 31, 2021, to June 30, 2021, but the cycle began to lengthen again, reaching 113.73 days by September 30, 2022. This extended period may signify challenges in efficiently managing inventory and collecting cash from sales.
However, there was a notable improvement in the cycle from September 30, 2022, to March 31, 2023, where it decreased to 99.38 days. The cycle then fluctuated in the following quarters, but generally trended downwards, reaching 97.38 days by December 31, 2024.
Overall, Vericel Corp Ord's cash conversion cycle has exhibited variability, with periods of elongation and improvement. Analyzing the factors contributing to these fluctuations can provide insights into the company's operational efficiency, inventory management, and effectiveness in converting sales into cash.
Peer comparison
Dec 31, 2024