Vericel Corp Ord (VCEL)

Current 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
Total current assets	US$ in thousands	205,631	186,211	182,871	177,545	186,866	166,375	155,094	151,880	158,462	144,946	138,520	127,213	123,560	125,382	115,762	116,537	111,655	104,718	94,048	109,601
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
Current ratio		4.49	5.18	5.14	6.17	4.99	6.16	6.20	6.99	6.08	7.70	5.80	5.48	5.50	5.88	6.39	6.43	5.64	6.93	7.50	8.47

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $205,631K ÷ $45,749K
= 4.49

Vericel Corp's current ratio has exhibited fluctuations over the past eight quarters, ranging from a low of 4.49 in Q4 2023 to a high of 6.99 in Q1 2022. A current ratio above 1 indicates that the company's current assets exceed its current liabilities, suggesting sufficient liquidity to meet short-term obligations.

The current ratio peaked in Q1 2022 at 6.99, reflecting strong liquidity levels. However, there was a decline in subsequent quarters, with the lowest ratio of 4.49 recorded in Q4 2023. While a high current ratio is generally favorable, excessively high ratios may signify inefficient deployment of assets. Conversely, a low current ratio may indicate potential liquidity challenges in meeting obligations.

Considering the recent trend in Vericel Corp's current ratio, management should continue monitoring liquidity levels to ensure they remain optimal for meeting short-term financial obligations while avoiding excessive asset idle idleness.