Aurora Cannabis Inc. (ACB) Bundle
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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