Vericel Corp Ord (VCEL)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	10,362	-3,182	-16,709	-7,471	2,864
Revenue	US$ in thousands	237,224	197,516	164,365	156,184	124,179
Net profit margin		4.37%	-1.61%	-10.17%	-4.78%	2.31%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $10,362K ÷ $237,224K
= 4.37%

Vericel Corp Ord's net profit margin has exhibited fluctuations over the period from December 31, 2020, to December 31, 2024. In 2020, the net profit margin stood at 2.31%, indicating that the company generated a modest profit relative to its revenue. However, there was a significant decline in profitability in 2021, with the net profit margin decreasing to -4.78%. This negative figure suggests that the company incurred losses during the year.

The trend of declining profitability continued into 2022 and 2023, with net profit margins of -10.17% and -1.61%, respectively. These consecutive years of negative net profit margins raise concerns about the company's ability to effectively manage its costs and generate sustainable profits.

However, there was a notable improvement in profitability in 2024, as the net profit margin increased to 4.37%. This positive figure indicates that Vericel Corp Ord was able to enhance its profitability and generate a higher level of net income relative to its revenue during that year.

Overall, the fluctuating net profit margins over the five-year period reflect the company's varying levels of profitability and highlight the importance of closely monitoring and managing costs to ensure sustainable financial performance.