Vericel Corp Ord (VCEL)

Quick ratio

		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	US$ in thousands	74,520	53,681	75,854	70,742	86,866	60,473	43,023	61,834	51,067	65,216	56,054	55,659	68,330	54,553	51,761	58,154	33,620	43,507	55,704	45,623
Short-term investments	US$ in thousands	41,693	48,053	52,217	47,710	40,469	44,870	54,808	57,442	68,471	45,724	44,638	44,888	35,068	43,738	39,214	25,402	42,187	42,035	25,086	35,957
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	50,286	41,346	43,863	36,470	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	20,750
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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($74,520K + $41,693K + $—K) ÷ $50,286K
= 2.31

Vericel Corp Ord's quick ratio has fluctuated over the period studied. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates the company has sufficient liquid assets to cover its current liabilities.

Vericel Corp Ord's quick ratio started relatively high at 3.93 as of March 31, 2020, and remained above 3 for the subsequent quarters. The ratio steadily increased to peak at 5.22 on September 30, 2021, indicating a considerable improvement in the company's liquidity position. However, starting from March 31, 2022, the quick ratio began to fluctuate, albeit remaining generally above 3.

The quick ratio dropped to 2.75 by June 30, 2023, which may raise concerns about the company's ability to meet its short-term obligations with its liquid assets. This decrease continued as the quick ratio further declined to 2.31 by December 31, 2024. The downward trend in the quick ratio suggests a potential liquidity strain for Vericel Corp Ord during the latter part of the period.

Overall, while Vericel Corp Ord maintained a relatively strong liquidity position during most of the period with quick ratios above 3, the decreasing trend from mid-2023 onwards indicates a need for careful monitoring of the company's ability to cover its short-term liabilities with its current liquid assets.