Irhythm Technologies (IRTC) has disclosed a new risk, in the Accounting & Financial Operations category.
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Irhythm Technologies faces a significant financial risk due to its accounting practices for convertible debt securities, such as the 2029 Notes. The company’s decision to present the entire amount of these notes as debt on its balance sheet, instead of separately accounting for their liability and equity components, could materially impact its financial results. Additionally, the use of the ‘if-converted’ method to calculate diluted earnings per share may result in adverse effects if all debt securities are assumed to be converted into common stock. Moreover, any reclassification of the liability carrying value of the 2029 Notes to a current liability, even without actual conversions, could substantially diminish the company’s reported working capital.
Overall, Wall Street has a Strong Buy consensus rating on IRTC stock based on 10 Buys and 2 Holds.
To learn more about Irhythm Technologies’ risk factors, click here.
