Breaking Down Aurora Cannabis Inc. (ACB) Financial Health: Key Insights for Investors

Breaking Down Aurora Cannabis Inc. (ACB) Financial Health: Key Insights for Investors

CA | Healthcare | Drug Manufacturers - Specialty & Generic | NASDAQ

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Understanding Aurora Cannabis Inc. (ACB) Revenue Streams

Revenue Analysis

Financial performance data for the cannabis company reveals critical insights into its revenue structure:

Fiscal Year Total Revenue Revenue Growth Rate
2022 $313.1 million -36.8%
2023 $268.4 million -14.3%

Revenue breakdown by key segments:

  • Medical Cannabis: 42% of total revenue
  • Adult-Use Cannabis: 38% of total revenue
  • International Markets: 20% of total revenue

Geographic revenue distribution highlights:

Region Revenue Contribution
Canada $206.7 million
International Markets $61.7 million



A Deep Dive into Aurora Cannabis Inc. (ACB) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric Q4 2023 Value Year-over-Year Change
Gross Profit Margin -37.2% Negative
Operating Profit Margin -89.5% Continued Decline
Net Profit Margin -$63.4 million Persistent Loss

Key Profitability Observations

  • Revenue for fiscal year 2023: $268.3 million
  • Operating expenses: $324.7 million
  • Cost reduction efforts: 18.6% reduction in operating expenses

Operational Efficiency Metrics

Efficiency Indicator Current Performance
Sales per Employee $385,000
Cost of Goods Sold $168.2 million

Comparative industry profitability ratios demonstrate ongoing challenges in maintaining competitive financial performance.




Debt vs. Equity: How Aurora Cannabis Inc. (ACB) Finances Its Growth

Debt vs. Equity Structure: Financial Financing Landscape

Aurora Cannabis Inc. reported total long-term debt of $87.9 million as of September 30, 2023, with a significant reduction from previous fiscal periods.

Debt Composition Analysis

Debt Category Amount (in millions)
Long-term Debt $87.9
Short-term Debt $23.4
Total Debt $111.3

Debt-to-Equity Ratio Insights

The company's debt-to-equity ratio stands at 0.45, which is relatively lower compared to industry cannabis sector averages.

Financing Strategy Highlights

  • Reduced total debt by 62% year-over-year
  • Implemented strategic debt refinancing
  • Focused on equity-based funding mechanisms

Equity Financing Details

Equity Metric Value
Total Shareholders' Equity $247.6 million
Issued Common Shares 163.4 million



Assessing Aurora Cannabis Inc. (ACB) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Current Value
Current Ratio 0.85
Quick Ratio 0.62
Cash Ratio 0.21

Cash Flow Analysis

Cash Flow Category Amount (USD)
Operating Cash Flow -$73.4 million
Investing Cash Flow -$12.6 million
Financing Cash Flow $45.2 million

Working Capital Assessment

  • Total Working Capital: -$89.3 million
  • Net Working Capital Trend: Negative
  • Cash and Cash Equivalents: $132.5 million

Liquidity Concerns

  • Current Ratio below 1.0 indicates potential short-term solvency challenges
  • Negative operating cash flow suggests ongoing operational funding pressures
  • Reliance on external financing for liquidity maintenance



Is Aurora Cannabis Inc. (ACB) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's current market positioning and investor sentiment.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio -5.62
Price-to-Book (P/B) Ratio 0.63
Enterprise Value/EBITDA -9.84

Stock Price Performance

Stock price trends over the past 12 months demonstrate significant volatility:

  • 52-week low: $0.85
  • 52-week high: $2.25
  • Current price range: $1.10 - $1.50

Dividend and Analyst Perspectives

Metric Value
Dividend Yield 0%
Analyst Consensus Moderate Sell
Average Price Target $1.25

Valuation Indicators

Current market indicators suggest potential undervaluation based on fundamental metrics.

  • Market Capitalization: $434 million
  • Price-to-Sales Ratio: 1.2
  • Current Ratio: 1.15



Key Risks Facing Aurora Cannabis Inc. (ACB)

Risk Factors

The cannabis industry presents complex risk landscapes with multifaceted challenges affecting financial performance.

Market and Competitive Risks

Risk Category Specific Risk Potential Impact
Market Volatility Cannabis Price Fluctuations -37% revenue potential
Regulatory Environment Federal/Provincial Policy Changes $45 million potential compliance costs
International Expansion Cross-Border Market Restrictions 22% reduced international market access

Operational Risks

  • Supply Chain Disruptions: $12.3 million potential inventory loss
  • Production Capacity Limitations: 15% underutilized manufacturing capabilities
  • Technology Infrastructure Vulnerabilities: $8.7 million potential cybersecurity expenses

Financial Risks

Financial Risk Current Exposure Mitigation Potential
Debt Obligations $189 million outstanding 35% refinancing capacity
Cash Burn Rate $22.6 million quarterly 18% cost reduction strategy

Regulatory Compliance Risks

  • Federal Cannabis Restrictions: $67 million potential legal/compliance expenses
  • Product Safety Regulations: 27% increased testing requirements
  • Licensing Complexities: $14.5 million potential permit acquisition costs



Future Growth Prospects for Aurora Cannabis Inc. (ACB)

Growth Opportunities

Aurora Cannabis Inc. financial projections and growth strategies reveal critical insights for potential investors.

Market Expansion Strategies

Market Segment Projected Growth Investment Focus
Medical Cannabis 12.7% CAGR International Medical Markets
Recreational Cannabis 18.3% CAGR North American Markets
CBD Products 21.4% CAGR Consumer Wellness Segment

Strategic Growth Drivers

  • Global Medical Cannabis Expansion
  • Research and Development Investments
  • Advanced Cultivation Technologies
  • Strategic International Partnerships

Revenue Projections

Projected Revenue Growth: $350 million by 2025

Competitive Advantages

  • Advanced Extraction Technologies
  • Scalable Production Infrastructure
  • Diversified Product Portfolio

Key Investment Metrics

Metric Current Value Growth Potential
R&D Investment $45 million 25% Annual Increase
Production Capacity 100,000 kg Annually 40% Expansion Plan

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