Avita Medical, Inc. — Earnings Quality Grade F
RCEL · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 46 days, change -21 days YoY
AR growth -22.9% vs revenue growth 11.5%
Revenue 11.5%, CFFO 36.3%. Cash follows revenue
Expense Quality
Inventory -4.7% vs COGS 40.7%. Normal
CapEx growth -81.4% vs revenue 11.5%. Normal
SG&A/Gross Profit = 136.9%, exceeds 70%
Gross margin 82.1%, change -3.7pp. Stable
Cash Flow Quality
CFFO/NI = 0.64. Below 1.0
FCF is negative ($-0.0B)
Accruals ratio = -30.8%. Low accruals
Cash $0.0B covers only 39% of debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = -34% of equity. Manageable
Interest coverage = -8.5x (<2x). Financial stress
Other assets 5.0% vs revenue 11.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -4.06 (< -2.22). Unlikely manipulator
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25