Vericel Corp Ord (VCEL)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	74,520	69,088	51,067	68,330	33,620
Short-term investments	US$ in thousands	41,693	40,469	68,471	35,068	42,187
Total current liabilities	US$ in thousands	50,286	45,749	37,463	26,052	22,483
Cash ratio		2.31	2.39	3.19	3.97	3.37

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($74,520K + $41,693K) ÷ $50,286K
= 2.31

Vericel Corp Ord's cash ratio has shown some fluctuations over the years. The cash ratio, which measures the company's ability to cover short-term liabilities using its cash and cash equivalents, was 3.37 at the end of 2020 and increased to 3.97 by the end of 2021, indicating a strong liquidity position.

However, there was a slight decrease in the cash ratio to 3.19 by the end of 2022, followed by a more significant decline to 2.39 by the end of 2023 and further to 2.31 by the end of 2024. These decreases suggest a potential reduction in the company's ability to cover its short-term obligations solely with its available cash and cash equivalents.

It is important for Vericel Corp Ord to monitor its cash ratio closely to ensure it maintains sufficient liquidity to meet its short-term financial obligations and to weather any unexpected financial challenges that may arise.