Vericel Corp Ord (VCEL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -1,768 | -15,613 | -7,578 | 3,050 | -9,657 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 225,952 | 192,272 | 170,462 | 134,260 | 111,091 |
| Return on total capital | -0.78% | -8.12% | -4.45% | 2.27% | -8.69% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,768K ÷ ($—K + $225,952K)
= -0.78%
Vericel Corp's return on total capital has fluctuated over the past five years, ranging from -10.13% in 2019 to -2.86% in 2023. The company experienced a significant improvement in 2020 with a return of 1.77%, only to see a decrease in 2021 and further declines in 2022 and 2023. The negative returns in the last two years indicate that the company's capital utilization has not been efficient enough to generate satisfactory returns for its investors. Vericel Corp may need to focus on improving its operational efficiency and capital allocation strategies to enhance its return on total capital in the future.
Peer comparison
Dec 31, 2023