Vericel Corp Ord (VCEL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 69,088 | 51,067 | 68,330 | 33,620 | 26,889 |
| Short-term investments | US$ in thousands | 40,469 | 68,471 | 35,068 | 42,187 | 42,829 |
| Receivables | US$ in thousands | 52,756 | 40,439 | 30,437 | 29,204 | 28,268 |
| Total current liabilities | US$ in thousands | 45,749 | 37,463 | 26,052 | 22,483 | 19,795 |
| Quick ratio | 3.55 | 4.27 | 5.14 | 4.67 | 4.95 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($69,088K
+ $40,469K
+ $52,756K)
÷ $45,749K
= 3.55
Vericel Corp's quick ratio has fluctuated over the past five years, ranging from a low of 3.82 in 2023 to a high of 5.57 in 2021. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.
Vericel's quick ratio has generally remained above 1 over the period, suggesting a healthy liquidity position. The higher ratios in 2021 (5.57), 2019 (5.30), and 2020 (5.08) indicate that the company had a strong ability to meet its short-term obligations with its readily available assets.
However, the decrease in the quick ratio to 3.82 in 2023 may raise some concerns as it indicates a potential decline in the company's ability to cover its short-term liabilities with its liquid assets. It would be important to further investigate the reasons behind this decrease and assess the overall liquidity position of Vericel Corp.
Peer comparison
Dec 31, 2023