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.