We feel now is a pretty good time to analyse Advanced Health Intelligence Ltd.'s (ASX:AHI) business as it appears the company may be on the cusp of a considerable accomplishment. Advanced Health Intelligence Ltd. operates as a mobile application and technology development company in Australia and internationally. On 30 June 2023, the AU$28m market-cap company posted a loss of AU$13m for its most recent financial year. As path to profitability is the topic on Advanced Health Intelligence's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Advanced Health Intelligence

Expectations from some of the Australian Healthcare Services analysts is that Advanced Health Intelligence is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of AU$13m in 2025. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 137%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Advanced Health Intelligence's growth isn’t the focus of this broad overview, though, keep in mind that generally healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Advanced Health Intelligence is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Advanced Health Intelligence's case is 71%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Advanced Health Intelligence to cover in one brief article, but the key fundamentals for the company can all be found in one place – Advanced Health Intelligence's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:

1. Historical Track Record: What has Advanced Health Intelligence's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Advanced Health Intelligence's board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.