Vericel Corp Ord (VCEL)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-3,182	-16,709	-7,471	2,864	-9,665
Total stockholders’ equity	US$ in thousands	225,952	192,272	170,462	134,260	111,091
ROE		-1.41%	-8.69%	-4.38%	2.13%	-8.70%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-3,182K ÷ $225,952K
= -1.41%

Vericel Corp's return on equity (ROE) has exhibited fluctuations over the past five years, ranging from -8.70% in 2019 to -1.41% in 2023. The negative ROE indicates that the company's net income is insufficient to generate a positive return for shareholders' equity. The declining trend from -8.70% in 2019 to -1.41% in 2023 suggests ongoing challenges in efficiently utilizing shareholder funds to generate profits. This downward trajectory raises concerns about the company's ability to generate sustainable returns for its shareholders over the long term. Further analysis and investigation into the company's financial performance and operational efficiency are recommended to address the declining ROE trend.