Vericel Corp Ord (VCEL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.64% | 66.80% | 67.88% | 67.83% | 68.12% |
| Operating profit margin | -3.27% | -10.38% | -5.03% | 1.91% | -9.55% |
| Pretax margin | -1.20% | -9.72% | -4.85% | 2.45% | -8.20% |
| Net profit margin | -1.61% | -10.17% | -4.78% | 2.31% | -8.20% |
Vericel Corp's profitability ratios have fluctuated over the past five years. The gross profit margin has remained relatively stable, ranging from 66.80% to 68.64%, indicating the company's ability to generate profit from its revenue after accounting for the cost of goods sold.
However, the operating profit margin, which takes into account operating expenses, has shown more variability, ranging from -10.38% to -3.27%. This suggests that Vericel Corp has struggled to control its operating costs efficiently in recent years.
Similarly, the pretax margin and net profit margin have also shown inconsistency, with both metrics experiencing significant fluctuations. The pretax margin indicates the company's profitability before accounting for taxes, while the net profit margin reflects the profit after all expenses, including taxes.
Overall, Vericel Corp's profitability ratios suggest that the company has faced challenges in maintaining consistent profitability levels in recent years, possibly due to fluctuations in operating expenses and other factors impacting the company's bottom line.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.83% | -6.25% | -3.22% | 1.15% | -7.34% |
| Return on assets (ROA) | -0.90% | -6.12% | -3.07% | 1.39% | -6.31% |
| Return on total capital | -0.78% | -8.12% | -4.45% | 2.27% | -8.69% |
| Return on equity (ROE) | -1.41% | -8.69% | -4.38% | 2.13% | -8.70% |
Vericel Corp's profitability ratios have exhibited fluctuations over the past five years. The Operating ROA has varied from negative 1.83% in 2023 to negative 7.34% in 2019. This metric measures the company's operating income generated per dollar of assets, indicating a negative trend in recent years.
Similarly, the ROA ranged from negative 0.90% in 2023 to positive 1.39% in 2020, reflecting the company's overall profitability in generating net income from its assets. The negative values suggest that the company's net income was insufficient to cover its assets during the periods in question.
The return on total capital has also fluctuated significantly, with a low of negative 10.13% in 2019 and a high of positive 1.77% in 2020. This metric evaluates the company's efficiency in generating returns from both debt and equity capital invested in its operations.
Lastly, the ROE varied from negative 1.41% in 2023 to positive 2.13% in 2018, denoting the company's ability to generate profits from shareholders' equity. The negative values in recent years indicate that the company's net income was not sufficient to provide a satisfactory return to its shareholders.
Overall, Vericel Corp's profitability ratios reflect inconsistencies in its ability to generate returns from its assets, capital, and equity over the past five years. Further analysis of the company's financial performance and strategic initiatives may be necessary to address these fluctuations and improve overall profitability.