Vericel Corp Ord (VCEL)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	-6,464	-17,058	-7,854	2,372	-11,251
Total assets	US$ in thousands	353,657	273,003	243,705	205,608	153,238
Operating ROA		-1.83%	-6.25%	-3.22%	1.15%	-7.34%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-6,464K ÷ $353,657K
= -1.83%

Vericel Corp's operating return on assets (operating ROA) has fluctuated over the past five years, indicating varying efficiency in utilizing its assets to generate operating profits. In 2023, the operating ROA improved to -1.83% from the significantly lower -6.25% in 2022. However, compared to 2021 when the operating ROA was at -3.22%, the company still needs to enhance its asset utilization to achieve profitability. The positive operating ROA of 1.15% in 2020 marks a notable improvement from the negative trends in previous years. The sharp decline in operating ROA to -7.34% in 2019 indicates challenges in generating operating income relative to the assets employed during that period. Vericel Corp should focus on improving asset efficiency and operational performance to sustain and enhance its profitability over time.