Risks

Net debt of 11.0x EBITDA and negative interest coverage leave RDGT more exposed to refinancing and rate pressure than peers with cleaner balance sheets.

Days sales outstanding of 104.9 and a 63.7-day cash conversion cycle indicate slower cash collection, reducing working-capital flexibility versus faster-turning peers.

Current and quick ratios above 2.0 provide near-term liquidity, but they do not offset the leverage burden as effectively as peers with lower debt service needs.

The absence of positive TTM free-cash-flow margin limits evidence of self-funding capacity, leaving RDGT less resilient than peers with recurring cash generation.

Opportunities

Current and quick ratios above 2.0 suggest RDGT has more short-term liquidity headroom than many peers, supporting operations through demand volatility.

Inventory days of 23.9 and payables days of 65.2 indicate a working-capital structure that can partially cushion cash needs versus less balanced peers.

If collections improve from the current 104.9-day DSO, cash conversion could tighten materially, creating upside relative to peers with already efficient receivables.

Low debt-to-equity, despite high net debt to EBITDA, may preserve some financing flexibility versus highly equity-levered peers if operating performance stabilizes.

Overall Score

RDGT’s forward positioning is constrained by elevated leverage, weak interest coverage, and slow receivables collection, while liquidity and working-capital structure provide only partial offset versus peers.