Vericel Corp Ord (VCEL)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	-6,464	-13,110	-14,841	-17,962	-17,058	-19,002	-17,175	-11,822	-7,854	294	8,772	4,143	2,372	-707	-1,127	-12,969	-11,251	-14,466	-18,899	-2,945
Total assets	US$ in thousands	353,657	318,125	310,711	265,096	273,003	248,017	244,815	240,288	243,705	224,143	221,945	211,464	205,608	157,504	146,691	150,265	153,238	137,527	125,826	141,229
Operating ROA		-1.83%	-4.12%	-4.78%	-6.78%	-6.25%	-7.66%	-7.02%	-4.92%	-3.22%	0.13%	3.95%	1.96%	1.15%	-0.45%	-0.77%	-8.63%	-7.34%	-10.52%	-15.02%	-2.09%

December 31, 2023 calculation

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

Vericel Corp's operating return on assets (operating ROA) has shown a consistent trend of negativity over the past eight quarters. The company's operating ROA ranged from -1.83% to -6.78% in Q4 2023 to Q1 2023, respectively. These negative values signify that Vericel Corp's operating income generated from its assets is insufficient to cover its operating expenses and asset base.

The declining trend in operating ROA indicates potential inefficiencies in Vericel Corp's operations, as the company is not effectively utilizing its assets to generate profits. It is important for the company to closely examine and address the factors contributing to these negative trends in order to improve its operational performance and financial health.