Vericel Corp Ord (VCEL)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	69,088	60,500	43,023	61,834	51,067	65,216	56,054	55,659	68,330	54,553	51,761	58,154	33,620	43,507	55,704	45,623	26,889	36,900	14,000	35,084
Short-term investments	US$ in thousands	40,469	44,870	54,808	57,442	68,471	45,724	44,638	44,888	35,068	43,738	39,214	25,402	42,187	42,035	25,086	35,957	42,829	37,800	52,047	49,001
Total current liabilities	US$ in thousands	45,749	35,946	35,611	28,753	37,463	27,004	25,014	21,731	26,052	18,828	23,863	23,230	22,483	21,313	18,121	18,125	19,795	15,112	12,543	12,941
Cash ratio		2.39	2.93	2.75	4.15	3.19	4.11	4.03	4.63	3.97	5.22	3.81	3.60	3.37	4.01	4.46	4.50	3.52	4.94	5.27	6.50

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($69,088K + $40,469K) ÷ $45,749K
= 2.39

Vericel Corp's cash ratio has displayed fluctuations over the past eight quarters. The cash ratio, which measures a company's ability to cover its current liabilities with its cash and cash equivalents, stood at 2.54 in Q4 2023, indicating a slight decrease from the previous quarter's level of 3.08. This suggests that the company had $2.54 in cash and cash equivalents for every dollar of current liabilities at the end of Q4 2023.

The cash ratio has demonstrated variability in recent quarters, reaching its highest point in Q1 2022 at 4.86 and its lowest point in Q4 2022 at 3.32. Generally, a higher cash ratio indicates a stronger liquidity position and ability to meet short-term obligations. Vericel Corp's cash ratio has generally remained above 2.5 over the past two years, reflecting a consistent ability to cover its short-term liabilities with its existing cash reserves.

It is important to note that while the cash ratio provides insights into a company's short-term liquidity, it should be analyzed alongside other financial ratios and metrics to gain a comprehensive understanding of Vericel Corp's overall financial health and performance.