Does CVRx (NASDAQ:CVRX) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We can see that CVRx, Inc. (NASDAQ:CVRX) does use debt in its business. But the more important question is: how much risk is that debt creating?

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What Risk Does Debt Bring?

Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.

What Is CVRx's Debt?

You can click the graphic below for the historical numbers, but it shows that as of June 2025 CVRx had US$49.4m of debt, an increase on US$29.3m, over one year. However, its balance sheet shows it holds US$95.0m in cash, so it actually has US$45.6m net cash.

How Healthy Is CVRx's Balance Sheet?

We can see from the most recent balance sheet that CVRx had liabilities of US$9.69m falling due within a year, and liabilities of US$51.9m due beyond that. Offsetting these obligations, it had cash of US$95.0m as well as receivables valued at US$7.15m due within 12 months. So it actually has US$40.5m more liquid assets than total liabilities.

This excess liquidity suggests that CVRx is taking a careful approach to debt. Because it has plenty of assets, it is unlikely to have trouble with its lenders. Simply put, the fact that CVRx has more cash than debt is arguably a good indication that it can manage its debt safely. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if CVRx can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

View our latest analysis for CVRx

In the last year CVRx wasn't profitable at an EBIT level, but managed to grow its revenue by 23%, to US$55m. Shareholders probably have their fingers crossed that it can grow its way to profits.

So How Risky Is CVRx?

By their very nature companies that are losing money are more risky than those with a long history of profitability. And we do note that CVRx had an earnings before interest and tax (EBIT) loss, over the last year. Indeed, in that time it burnt through US$39m of cash and made a loss of US$52m. But at least it has US$45.6m on the balance sheet to spend on growth, near-term. With very solid revenue growth in the last year, CVRx may be on a path to profitability. By investing before those profits, shareholders take on more risk in the hope of bigger rewards. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. Be aware that CVRx is showing 2 warning signs in our investment analysis , you should know about...

If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.