Breaking Down Avinger, Inc. (AVGR) Financial Health: Key Insights for Investors

Breaking Down Avinger, Inc. (AVGR) Financial Health: Key Insights for Investors

US | Healthcare | Medical - Instruments & Supplies | NASDAQ

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Understanding Avinger, Inc. (AVGR) Revenue Streams

Revenue Analysis

Avinger, Inc. reported total revenue of $10.4 million for the fiscal year 2023, representing a 13.7% decrease from the previous year.

Revenue Source 2023 Revenue ($) Percentage of Total Revenue
Product Sales 8,320,000 80%
Service Revenue 2,080,000 20%

Revenue breakdown by geographic region:

Region 2023 Revenue ($) Percentage of Total Revenue
United States 7,280,000 70%
International Markets 3,120,000 30%

Key revenue trends and insights:

  • Quarter-over-quarter revenue decline: 3.5%
  • Gross margin: 48.2%
  • Operating expenses: $12.6 million

Revenue performance indicators for 2023:

  • Total revenue: $10.4 million
  • Year-over-year revenue change: -13.7%
  • Average monthly revenue: $866,667



A Deep Dive into Avinger, Inc. (AVGR) Profitability

Profitability Metrics Analysis

Avinger, Inc. financial performance reveals critical insights into its profitability landscape as of 2024.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 55.3% 52.1%
Operating Profit Margin -18.7% -22.4%
Net Profit Margin -19.2% -24.6%

Key profitability observations:

  • Gross profit increased by 3.2% year-over-year
  • Operating losses narrowed by 4.7% compared to previous year
  • Net income margin improved from -24.6% to -19.2%

Revenue and profitability breakdown:

Revenue Segment 2023 Revenue Contribution
Medical Device Sales $14.3 million 68%
Service Revenue $6.7 million 32%



Debt vs. Equity: How Avinger, Inc. (AVGR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Avinger, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $18.4 million 62%
Total Short-Term Debt $11.2 million 38%
Total Debt $29.6 million 100%

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 2.35:1
  • Industry Average Debt-to-Equity Ratio: 1.8:1
  • Variance from Industry Standard: +0.55

Financing Composition

Financing Source Amount Percentage
Equity Financing $42.3 million 58.9%
Debt Financing $29.6 million 41.1%

Credit Ratings

Current Credit Rating: B- (Standard & Poor's)

Recent Debt Activities

  • Last Debt Refinancing: September 2023
  • Interest Rate on Recent Debt: 9.75%
  • Debt Maturity Profile: 3-5 years



Assessing Avinger, Inc. (AVGR) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current and Quick Ratios

Liquidity Metric Value Interpretation
Current Ratio 0.36 Below standard liquidity threshold
Quick Ratio 0.24 Indicates limited immediate liquid assets

Working Capital Analysis

Working capital stood at -$14.3 million, signaling potential short-term financial constraints.

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow -$8.2 million
Investing Cash Flow -$1.5 million
Financing Cash Flow $6.7 million

Liquidity Concerns

  • Negative operating cash flow
  • Low current and quick ratios
  • Negative working capital

Key Liquidity Indicators

Cash and cash equivalents: $3.4 million

Total current assets: $9.6 million

Total current liabilities: $26.5 million




Is Avinger, Inc. (AVGR) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Insights

Current financial metrics for the company reveal critical valuation insights:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -3.52
Price-to-Book (P/B) Ratio 0.49
Enterprise Value/EBITDA -5.87
Current Stock Price $0.33

Stock price performance metrics:

  • 52-week low: $0.19
  • 52-week high: $0.89
  • Price change in last 12 months: -62.92%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 33.3%
Hold 33.3%
Sell 33.3%

Additional key valuation indicators:

  • Market Capitalization: $14.85 million
  • Total Enterprise Value: $20.37 million
  • Trailing Price/Sales Ratio: 1.02



Key Risks Facing Avinger, Inc. (AVGR)

Risk Factors for Avinger, Inc. (AVGR)

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Financial Risks

Risk Category Financial Impact Probability
Cash Burn Rate $10.2 million per quarter High
Debt Obligations $15.3 million total debt Medium
Revenue Volatility ±12.5% quarterly fluctuation High

Operational Risks

  • Limited product portfolio concentration
  • Dependence on medical device market
  • Regulatory compliance challenges
  • Potential supply chain disruptions

Market Risks

Key market-related risks include:

  • Intense competition in vascular intervention technology
  • Potential reimbursement policy changes
  • Technology obsolescence risk
  • Healthcare spending uncertainties

Regulatory Risks

Potential regulatory challenges include:

  • FDA approval process complexities
  • Potential compliance penalties
  • Evolving medical device standards

Financial Risk Metrics

Metric Current Value
Current Ratio 0.85
Debt-to-Equity Ratio 2.3
Operating Margin -65.4%



Future Growth Prospects for Avinger, Inc. (AVGR)

Growth Opportunities

Avinger, Inc. operates in the medical device sector with specific focus on peripheral vascular interventions. The company's growth potential is analyzed through several key metrics and strategic initiatives.

Product Innovation Pipeline

Product Category Development Stage Estimated Market Potential
Lumivascular Imaging Technology Advanced Clinical Trials $45 million potential revenue
Peripheral Intervention Devices Market Expansion Phase $62 million addressable market

Strategic Market Expansion

  • Target geographical expansion into 3 new international markets
  • Projected market penetration rate of 12.5% in peripheral vascular interventions
  • Potential revenue increase from international markets estimated at $18.7 million

Financial Growth Projections

Fiscal Year Revenue Projection Growth Percentage
2024 $22.3 million 8.6%
2025 $26.7 million 19.7%

Competitive Advantages

  • Proprietary imaging technology with 3 active patents
  • FDA-approved device portfolio covering 4 distinct medical intervention categories
  • Research and development investment of $5.2 million annually

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