Vericel Corp Ord (VCEL)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-3,182	-16,709	-7,471	2,864	-9,665
Revenue	US$ in thousands	197,516	164,365	156,184	124,179	117,850
Net profit margin		-1.61%	-10.17%	-4.78%	2.31%	-8.20%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $-3,182K ÷ $197,516K
= -1.61%

Net profit margin, a key profitability ratio, is calculated by dividing net income by total revenues and expresses the percentage of each dollar of revenue that translates into profit. Vericel Corp's net profit margin has exhibited fluctuations over the past five years. In 2023, the company's net profit margin was -1.61%, indicating that Vericel Corp incurred a net loss equivalent to 1.61% of its total revenue. This reflects a slight improvement from the previous year, when the margin was at -10.17%. However, the company's profitability remains a concern as it has not achieved a positive net profit margin in recent years, with the highest margin recorded in 2020 at 2.31%. The negative margins in 2019 and 2022 further highlight the challenges faced by Vericel Corp in generating profits relative to its revenue. Continued monitoring and strategic initiatives may be necessary to improve the company's profitability in the future.