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.