Vericel Corp Ord (VCEL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.23 | 4.61 | 4.50 | 5.20 | 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 | 5.74 |
| Quick ratio | 2.31 | 2.46 | 2.92 | 3.25 | 2.78 | 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 | 3.93 |
| Cash ratio | 2.31 | 2.46 | 2.92 | 3.25 | 2.78 | 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 | 3.93 |
Vericel Corp Ord has demonstrated strong liquidity levels over the past few years based on its current ratio. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. Vericel Corp Ord's current ratio has generally remained above 5 during the period under review, indicating a healthy financial position.
Additionally, the quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Vericel Corp Ord's quick ratio has also been consistently above 2, suggesting that the company has an adequate level of liquid current assets to cover its short-term liabilities without relying on selling inventory.
Furthermore, the cash ratio, which is the most stringent measure of liquidity, indicates how well a company can cover its short-term liabilities using only its cash and cash equivalents. Vericel Corp Ord's cash ratio has been solid, remaining comfortably above 2 in most periods, indicating that the company has sufficient cash on hand to meet its immediate obligations.
Overall, based on the liquidity ratios analyzed, Vericel Corp Ord appears to have maintained robust liquidity levels, indicating its ability to meet short-term financial commitments effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for Vericel Corp Ord is a measure of how long it takes the company to convert its investments in inventory and other resources into cash flow from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle has fluctuated, showing a general trend of increase from 68.41 days to 97.38 days. The cycle peaked at 113.73 days on September 30, 2022, and decreased to 76.91 days on September 30, 2023, before increasing again to 97.38 days on December 31, 2024.
A longer cash conversion cycle indicates that the company takes more time to collect payment from customers, manage its inventory, and pay its own suppliers. This may be due to factors such as slower sales, inefficient inventory management, or delays in payment collections.
It is crucial for Vericel to closely monitor and manage its cash conversion cycle to ensure optimal utilization of its resources and maintain healthy cash flow. Improving efficiency in operations, optimizing inventory levels, and accelerating the collection of receivables could help reduce the cash conversion cycle and enhance the company's overall financial performance.