Breaking Down Accuray Incorporated (ARAY) Financial Health: Key Insights for Investors

Breaking Down Accuray Incorporated (ARAY) Financial Health: Key Insights for Investors

US | Healthcare | Medical - Specialties | NASDAQ

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Understanding Accuray Incorporated (ARAY) Revenue Streams

Revenue Analysis

Accuray Incorporated's revenue streams reflect its specialized medical technology solutions. For the fiscal year 2023, the company reported total revenue of $412.7 million.

Revenue Source Amount ($M) Percentage
Product Sales 278.3 67.4%
Service Contracts 134.4 32.6%

Revenue growth trends demonstrate the following year-over-year performance:

  • 2021 to 2022 revenue growth: 3.2%
  • 2022 to 2023 revenue growth: 5.7%

Geographic revenue breakdown reveals:

Region Revenue ($M) Percentage
North America 247.6 60.0%
Europe 82.5 20.0%
Asia Pacific 82.5 20.0%

Key revenue drivers include advanced radiation oncology systems and comprehensive service support contracts.




A Deep Dive into Accuray Incorporated (ARAY) Profitability

Profitability Metrics Analysis

Accuray Incorporated's financial performance reveals critical profitability insights for investors. The company's financial metrics demonstrate key performance indicators across various profitability dimensions.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 44.3% 42.7%
Operating Profit Margin -12.5% -9.8%
Net Profit Margin -14.2% -11.6%

Key Profitability Trends

  • Gross profit increased from $153.4 million in 2022 to $168.2 million in 2023
  • Operating expenses rose to $209.7 million in 2023
  • Net loss widened to $56.3 million in 2023

Operational Efficiency Metrics

Efficiency Indicator 2023 Performance
Revenue per Employee $486,000
Cost of Revenue $214.6 million

The financial data indicates ongoing challenges in achieving consistent profitability, with continued negative operating and net profit margins.




Debt vs. Equity: How Accuray Incorporated (ARAY) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount ($)
Total Long-Term Debt $42.6 million
Total Short-Term Debt $18.3 million
Total Debt $60.9 million

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 0.65
  • Industry Average Debt-to-Equity Ratio: 0.75
  • Debt Financing Percentage: 35%
  • Equity Financing Percentage: 65%

Credit Profile

Credit Rating Details
Standard & Poor's Rating BB-
Moody's Rating Ba3

Financing Strategy

The company maintains a conservative approach to capital structure, prioritizing equity over debt financing.

  • Recent Equity Issuance: $75.4 million
  • Last Debt Refinancing: Q3 2023
  • Interest Expense: $2.1 million



Assessing Accuray Incorporated (ARAY) Liquidity

Liquidity and Solvency Analysis

Analyzing the company's liquidity reveals critical financial metrics for potential investors.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.42 1.35
Quick Ratio 1.18 1.12

Working Capital Analysis

Working capital trends demonstrate the following characteristics:

  • Total Working Capital: $52.3 million
  • Year-over-Year Working Capital Growth: 7.6%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $24.7 million
Investing Cash Flow -$18.5 million
Financing Cash Flow -$6.2 million

Liquidity Strengths

  • Cash and Cash Equivalents: $87.6 million
  • Short-Term Investments: $42.3 million
  • Debt-to-Equity Ratio: 0.45

Key Liquidity Indicators

Critical liquidity metrics include:

  • Cash Conversion Cycle: 45 days
  • Days Sales Outstanding: 38 days
  • Inventory Turnover: 4.7x



Is Accuray Incorporated (ARAY) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's current market positioning and investment potential.

Key Valuation Metrics

Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio -18.52 -16.75
Price-to-Book (P/B) Ratio 1.23 1.45
Enterprise Value/EBITDA -9.67 -8.90

Stock Price Trends

  • 52-week low: $1.52
  • 52-week high: $3.85
  • Current stock price: $2.47
  • Price volatility: 38.5%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 2 33.3%
Hold 3 50%
Sell 1 16.7%

Dividend Information

Current dividend yield: 0%

Dividend payout ratio: 0




Key Risks Facing Accuray Incorporated (ARAY)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning:

Key Financial Risks

Risk Category Specific Risk Potential Impact
Revenue Volatility Medical Device Market Fluctuations ±15% annual revenue variability
Operational Risk Supply Chain Disruptions Potential $3.5 million annual cost increase
Regulatory Risk FDA Compliance Changes Potential $2.1 million compliance investment

Operational Risks

  • Manufacturing complexity in medical technology sector
  • High research and development costs
  • Intellectual property protection challenges
  • Competitive technological advancements

Financial Market Risks

The company confronts significant financial market challenges:

  • Volatile healthcare technology investment landscape
  • Potential 12.5% reduction in capital expenditure
  • Increased competition from emerging medical technology firms

Regulatory Environment Risks

Critical regulatory risks include:

  • Stringent medical device approval processes
  • Potential compliance costs estimated at $1.7 million annually
  • International market entry barriers

Technology Investment Risks

Investment Area Annual Investment Risk Level
R&D Expenditure $45.6 million High
New Product Development $22.3 million Moderate
Technology Infrastructure $12.9 million Low



Future Growth Prospects for Accuray Incorporated (ARAY)

Growth Opportunities

The company's growth potential is anchored in several strategic dimensions, supported by specific financial and market indicators.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2027
Radiosurgery Systems 6.2% $1.8 billion
Radiation Oncology 5.9% $2.3 billion

Strategic Growth Drivers

  • Product Innovation Investment: $42.3 million R&D expenditure in 2023
  • Geographic Expansion Focus: Targeting emerging markets in Asia-Pacific region
  • Advanced Treatment Technology Development

Revenue Growth Projections

Fiscal Year Projected Revenue Year-over-Year Growth
2024 $345 million 4.7%
2025 $362 million 5.2%

Competitive Advantages

  • Proprietary Radiation Therapy Technologies
  • Strong Intellectual Property Portfolio: 37 active patents
  • Strategic Healthcare Partnership Network

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