Vericel Corp Ord (VCEL)

Financial leverage ratio

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
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
Total stockholders’ equity US$ in thousands 225,952 204,380 198,928 193,978 192,272 177,837 174,816 172,485 170,462 156,780 151,092 140,209 134,260 114,630 107,596 110,452 111,091 96,990 88,542 103,055
Financial leverage ratio 1.57 1.56 1.56 1.37 1.42 1.39 1.40 1.39 1.43 1.43 1.47 1.51 1.53 1.37 1.36 1.36 1.38 1.42 1.42 1.37

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 been relatively stable over the past eight quarters, ranging from 1.37 to 1.57. This indicates that the company's proportion of debt to equity in its capital structure has remained within a certain range. A financial leverage ratio above 1 signifies that the company relies more on debt financing than equity financing to support its operations and growth.

The slight fluctuations in the financial leverage ratio suggest that Vericel Corp has been managing its debt levels effectively over the period analyzed. A higher financial leverage ratio could indicate higher financial risk, as the company may have higher interest payments and debt obligations to meet. On the other hand, a lower ratio may signal a conservative approach to financing, which could limit potential returns but also reduce financial risks.

Overall, based on the historical trend of Vericel Corp's financial leverage ratio, it appears that the company has maintained a moderate level of leverage in its capital structure, balancing the benefits and risks associated with debt financing.