Vericel Corp Ord (VCEL)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -2,368 | -15,979 | -7,582 | 3,044 | -9,665 |
| Revenue | US$ in thousands | 197,516 | 164,365 | 156,184 | 124,179 | 117,850 |
| Pretax margin | -1.20% | -9.72% | -4.85% | 2.45% | -8.20% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-2,368K ÷ $197,516K
= -1.20%
Vericel Corp's pretax margin has fluctuated over the past five years, exhibiting a mix of positive and negative values. The pretax margin was negative in three out of the five years, indicating that the company's pre-tax profits were insufficient to cover its operating expenses and interest payments during those periods. This suggests potential financial challenges and inefficiencies in managing costs and generating income.
The largest decline in pretax margin was observed in 2022, falling to -9.73%, which may have been influenced by factors such as declining revenues, rising expenses, or one-time charges affecting profitability. However, there was a notable improvement in 2020 when the pretax margin reached 2.45%, showing a positive trend in profitability during that year.
Overall, the inconsistency in Vericel Corp's pretax margin performance signals a need for a closer examination of the company's financial management practices, cost controls, revenue generation strategies, and overall operational efficiency. Additional analysis of the underlying factors contributing to the fluctuating pretax margin would be crucial in identifying areas for improvement and enhancing the company's financial performance in the future.
Peer comparison
Dec 31, 2023