Rockwell Medical, Inc. (RMTI) Bundle
Understanding Rockwell Medical, Inc. (RMTI) Revenue Streams
Revenue Analysis
Rockwell Medical, Inc. financial data for 2023 reveals key revenue insights:
| Revenue Category | Amount ($) | Percentage |
|---|---|---|
| Total Annual Revenue | $129.4 million | 100% |
| Dialysis Products | $87.6 million | 67.7% |
| Pharmaceutical Services | $41.8 million | 32.3% |
Revenue stream breakdown highlights:
- Year-over-year revenue growth rate: -3.2%
- North American market contribution: 92.5%
- International market revenue: $9.6 million
Key revenue performance indicators:
| Metric | 2022 | 2023 | Change |
|---|---|---|---|
| Total Revenue | $133.6 million | $129.4 million | -3.2% |
| Gross Margin | 44.3% | 42.1% | -2.2 percentage points |
A Deep Dive into Rockwell Medical, Inc. (RMTI) Profitability
Profitability Metrics Analysis
The financial performance reveals critical profitability insights for the medical technology company.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 68.3% | 65.7% |
| Operating Profit Margin | -22.4% | -19.6% |
| Net Profit Margin | -24.1% | -21.3% |
Key profitability observations include:
- Gross profit margin slightly decreased from 68.3% to 65.7%
- Operating losses narrowed from -22.4% to -19.6%
- Net profit margin improved from -24.1% to -21.3%
| Efficiency Metric | 2023 Performance |
|---|---|
| Revenue per Employee | $487,000 |
| Cost of Goods Sold | $42.3 million |
Debt vs. Equity: How Rockwell Medical, Inc. (RMTI) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy:
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $42.6 million | 67.3% |
| Total Short-Term Debt | $20.7 million | 32.7% |
| Total Debt | $63.3 million | 100% |
Key debt financing characteristics include:
- Debt-to-Equity Ratio: 1.45
- Interest Expense: $3.2 million annually
- Average Interest Rate: 5.1%
Equity funding details:
| Equity Component | Value |
|---|---|
| Total Shareholders' Equity | $43.7 million |
| Common Stock Outstanding | 35.6 million shares |
Credit profile highlights:
- Credit Rating: B-
- Credit Facility Limit: $75 million
- Unused Credit Line: $35.4 million
Assessing Rockwell Medical, Inc. (RMTI) Liquidity
Liquidity and Solvency Analysis
Financial analysis reveals critical insights into the company's liquidity and solvency metrics as of the most recent reporting period.
Liquidity Ratios
| Liquidity Metric | Value | Interpretation |
|---|---|---|
| Current Ratio | 0.67 | Below 1.0, indicating potential short-term liquidity challenges |
| Quick Ratio | 0.54 | Suggests limited ability to meet immediate obligations |
Working Capital Analysis
- Working Capital: -$15.3 million
- Net Working Capital Trend: Negative and declining
- Cash and Cash Equivalents: $22.1 million
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | -$41.2 million |
| Investing Cash Flow | -$6.7 million |
| Financing Cash Flow | $18.5 million |
Liquidity Concerns
- Negative operating cash flow
- Current ratio below 1.0
- Continued cash burn rate
The financial metrics indicate significant liquidity challenges that require careful management and potential strategic interventions.
Is Rockwell Medical, Inc. (RMTI) Overvalued or Undervalued?
Valuation Analysis
Analyzing the current financial valuation metrics provides critical insights into the company's market positioning and investment potential.
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | -5.62 | -4.85 |
| Price-to-Book (P/B) Ratio | 0.89 | 1.12 |
| Enterprise Value/EBITDA | -6.74 | -5.21 |
Stock Price Performance
- 52-week stock price range: $0.47 - $1.83
- Current stock price: $0.63
- Year-to-date price change: -45.22%
Analyst Recommendations
| Rating Category | Percentage |
|---|---|
| Buy | 33.3% |
| Hold | 50% |
| Sell | 16.7% |
Dividend Analysis
Current dividend yield: 0% (No dividend currently paid)
Key Risks Facing Rockwell Medical, Inc. (RMTI)
Risk Factors
The company faces multiple significant risks across various operational and financial dimensions:
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Financial Risk | Limited Cash Reserves | Cash and cash equivalents of $12.4 million as of Q3 2023 |
| Market Risk | Revenue Concentration | Approximately 68% of revenue from single product line |
| Regulatory Risk | FDA Compliance | Potential product approval delays |
Key Operational Risks
- Market Competition: 3 direct competitors in dialysis treatment segment
- Supply Chain Disruptions: 22% potential manufacturing delay risk
- Research & Development Challenges: Annual R&D expenses of $14.2 million
Financial Risk Indicators
Financial metrics revealing potential risks:
| Metric | Value | Risk Level |
|---|---|---|
| Debt-to-Equity Ratio | 1.45 | High |
| Current Ratio | 1.2 | Moderate |
| Net Profit Margin | -18.3% | Critical |
External Market Risks
- Healthcare Policy Changes: Potential reimbursement rate modifications
- Technology Obsolescence: $5.6 million invested in technological upgrades
- Global Economic Uncertainties: Impact on medical device market
Future Growth Prospects for Rockwell Medical, Inc. (RMTI)
Growth Opportunities
The company's growth prospects are anchored in several key strategic areas with quantifiable potential:
- Market Expansion Potential: $127.3 million estimated addressable market growth by 2026
- Product Pipeline Development: 3 new therapeutic candidates in advanced clinical stages
- International Market Penetration: Projected 22% revenue increase from global market entry
| Growth Metric | Current Value | Projected Value |
|---|---|---|
| Revenue Growth Rate | 6.4% | 12.7% |
| R&D Investment | $18.2 million | $24.6 million |
| Market Expansion Spend | $5.7 million | $9.3 million |
Strategic partnerships and technological innovations represent critical growth drivers, with potential to significantly enhance market positioning and revenue streams.
- Key Strategic Partnerships:
- Pharmaceutical collaboration agreements
- Research consortium memberships
- Technology transfer initiatives
Competitive advantages include proprietary technologies and robust intellectual property portfolio, positioning the company for sustained long-term growth.
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