AVITA MedicalRCEL +1.40%66 Interest Coverage is 0 (At Loss) as of Mar. 2026. GuruFocus rates RCEL with a GF Score™ of 66/100 and a GF Value™ of $10.78 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 468 Medical Devices & Instruments companies, AVITA Medical ranks worse than 213675% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. AVITA Medical's
Operating Income
for the
three
months ended in Mar. 2026 was $-8.80 Mil. AVITA Medical's Interest Expense for the
three
months ended in Mar. 2026 was $-1.42 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for AVITA Medical's Interest Coverage or its related term are showing as below:
RCEL's Interest Coverage is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 15.71 * Ranked among companies with meaningful Interest Coverage only.
AVITA Medical (NAS:RCEL) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
AVITA Medical Interest Coverage Related Terms
AVITA Medical Interest Coverage Historical Data
* Premium members only.
The historical data trend for AVITA Medical's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
RCEL vs NNOX, MXCT, SNWV: Interest Coverage Comparison
For the Medical Devices subindustry, AVITA Medical's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AVITA Medical Interest Coverage vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, AVITA Medical's Interest Coverage distribution charts can be found below:
* The bar in red indicates where AVITA Medical's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
AVITA Medical did not have earnings to cover the interest expense.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Interest Coverage of 0 (At Loss) mean?
AVITA Medical (RCEL) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on AVITA Medical and its competitors. According to the industry distribution chart, AVITA Medical ranks #999999 out of 468 companies in the Medical Devices & Instruments industry.
Is AVITA Medical's Interest Coverage too high?
AVITA Medical's current Interest Coverage is 0 (At Loss). Based on the distribution chart, AVITA Medical ranks #999999 out of 468 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, AVITA Medical has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AVITA Medical's Interest Coverage compare to NNOX and MXCT?
According to the Medical Devices & Instruments industry distribution chart, AVITA Medical ranks #999999 out of 468 companies for Interest Coverage. This places AVITA Medical in the lower half of its industry. The industry median Interest Coverage is 15.71. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Medical Devices & Instruments company?
The median Interest Coverage among Medical Devices & Instruments companies is 15.71, based on 468 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on AVITA Medical and its competitors. For the Medical Devices & Instruments industry, the median Interest Coverage is 15.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AVITA Medical's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AVITA Medical stock overvalued right now?
Based on GuruFocus' analysis, AVITA Medical (RCEL) is currently considered Possible Value Trap. The stock's GF Value™ is $10.78, compared to a current price of $3.98 — trading 63.1% below its estimated fair value. The current Interest Coverage is 0 (At Loss). AVITA Medical's overall GF Score™ is 66/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For AVITA Medical (RCEL), the current Interest Coverage is 0 (At Loss) as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AVITA Medical (RCEL) Overvalued in 2026?
Based on GuruFocus' analysis, AVITA Medical stock appears to be undervalued.
The current stock price of $3.98 is trading 63.1% below its estimated GF Value™ of $10.78.
GuruFocus considers AVITA Medical to be Possible Value Trap.
Key valuation signals for RCEL:
Interest Coverage: 0 (At Loss)
GF Value™: $10.78 vs. price of $3.98 (63.1% below fair value)
No single metric tells the full story. See the RCEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avita is largely a single product company. Its RECELL system is an innovative burn treatment device which creates Spray-on Skin from a small skin sample within 30 minutes, thus avoiding or reducing the need for skin grafts. It's approved for the treatment of adult and paediatric patients in the US and an expanded indication for soft-tissue reconstruction. It is currently used in most of the 140 US burn centers. Despite having product approval in Australia, Canada, and China, Avita is not actively marketing in those territories and focussing instead on the US region, although international sales, particularly in Japan, are growing. Avita is domiciled, and has its primary listing, in the US.
66GF Score
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