Vericel Corp Ord (VCEL)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	353,657	273,003	243,705	205,608	153,238
Total stockholders’ equity	US$ in thousands	225,952	192,272	170,462	134,260	111,091
Financial leverage ratio		1.57	1.42	1.43	1.53	1.38

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $353,657K ÷ $225,952K
= 1.57

Vericel Corp's financial leverage ratio has shown fluctuations over the five-year period analyzed. The ratio measures the company's degree of financial leverage, indicating the proportion of debt in its capital structure relative to equity.

In 2023, the financial leverage ratio increased to 1.57 from 1.42 in 2022, suggesting a higher reliance on debt financing compared to equity. This could increase the company's financial risk as debt obligations may need to be met even during challenging economic conditions.

Compared to 2021 and 2019, when the ratios were 1.43 and 1.38 respectively, the financial leverage ratio in 2023 is higher, indicating a trend of increased leverage over time. This may have been driven by strategic decisions to fund growth opportunities or acquisitions through debt to leverage potential returns.

However, when comparing the ratio to 2020 (1.53), there was a slight reduction in financial leverage in 2023. This suggests that the company may have taken steps to improve its capital structure by reducing debt levels or increasing equity.

Overall, Vericel Corp's financial leverage ratio has shown variability over the years, indicating shifts in its financing strategy and potential impacts on the company's financial risk and performance. Investors and stakeholders should closely monitor these changes to assess the company's financial health and stability.