Vericel Corp Ord (VCEL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 3.55 | 3.90 | 3.67 | 5.24 | 4.27 | 5.15 | 5.10 | 5.78 | 5.14 | 6.37 | 4.84 | 4.59 | 4.67 | 5.03 | 5.52 | 5.64 | 4.95 | 5.99 | 6.95 | 7.95 |
| 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 |
Vericel Corp's liquidity ratios, specifically the current ratio, quick ratio, and cash ratio, display a consistent and healthy trend over the eight quarters provided. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, shows a gradual decline from Q1 2023 to Q4 2023, but remains well above 1, indicating a strong ability to meet current debt obligations.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibits a decreasing trend but remains robust over the same period. This suggests that Vericel Corp can meet its short-term liabilities even without relying on the sale of inventory.
The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, follows the same declining trend but still indicates a sufficient level of cash on hand to cover immediate obligations.
Overall, Vericel Corp's liquidity ratios reflect a consistently strong financial position, with liquidity levels well above industry benchmarks. The gradual decline in these ratios over the past quarters may warrant monitoring for potential shifts in the company's liquidity position in the future.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Vericel Corp has been fluctuating over the past eight quarters. In Q1 2023, the company experienced a significant decrease in its cash conversion cycle to 110.14 days compared to the previous quarter's 75.25 days. This suggests that the company was able to collect its receivables, convert inventory into sales, and pay its liabilities more efficiently during the quarter.
However, in Q2 and Q3 2023, the cash conversion cycle increased to 75.25 days and 63.49 days, respectively, which indicates a lengthening of the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. This could be a sign of worsening efficiency in managing working capital.
In Q4 2023, there was a slight improvement in the cash conversion cycle to 53.27 days, indicating the company was able to streamline its operations and manage its working capital more effectively compared to the previous quarters.
Overall, Vericel Corp should continue to monitor and improve its cash conversion cycle to ensure efficient utilization of its resources and maintain healthy cash flows. Further analysis of the underlying factors affecting each component of the cycle, such as receivables collection, inventory turnover, and payables management, would provide more insights into the company's operational efficiency and financial health.