Vericel Corp Ord (VCEL)

Return on assets (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
Net income (ttm)	US$ in thousands	-3,182	-10,244	-13,161	-17,104	-16,700	-18,096	-16,450	-11,273	-7,471	214	8,763	4,280	2,864	145	-3	-11,526	-9,665	-13,924	-18,463	-3,322
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
ROA		-0.90%	-3.22%	-4.24%	-6.45%	-6.12%	-7.30%	-6.72%	-4.69%	-3.07%	0.10%	3.95%	2.02%	1.39%	0.09%	-0.00%	-7.67%	-6.31%	-10.12%	-14.67%	-2.35%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $-3,182K ÷ $353,657K
= -0.90%

Vericel Corp's return on assets (ROA) has shown a declining trend over the past eight quarters. The ROA figures have ranged from -0.90% to -6.46%, with the most recent ROA standing at -0.90% in Q4 2023. This indicates that, on average, the company has been generating net profits of less than 1% for every dollar of assets it possesses.

The negative ROA values suggest that Vericel Corp is not effectively utilizing its assets to generate profits. The decreasing trend in ROA over the quarters may signify operational inefficiencies, poor financial management, or declining profitability of the company.

It is crucial for Vericel Corp to address the factors leading to the low ROA figures and work towards improving asset utilization efficiency in order to enhance profitability and financial performance in the future. Reversing this downward trend in ROA will be essential for the company to sustain growth and create long-term value for its stakeholders.