Cash Flow Chronicles: Analyst Dissects Canadian Cannabis Balance Sheets, Market Trends Vs. The US
Portfolio Pulse from Nicolás Jose Rodriguez
The Canadian cannabis market has shown steady growth, but underperforms the U.S. market. Only three out of the 17 Canadian companies reviewed showed positive operating cash flow (OCF) in 2022, including Decibel (OTC:DBCCF), High Tide (NASDAQ:HITI) and Rubicon (OTC:ROMJF). Companies with high net debt-to-sales ratios such as Auxly (OTC:CBWTF), Canopy Growth (NASDAQ:CGC), and HEXO Corp. (NASDAQ:HEXO) could face challenges if cash flow trends don't improve.
July 27, 2023 | 1:05 pm
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POSITIVE IMPACT
Decibel showed positive operating cash flow in 2022.
Positive operating cash flow is a good sign for the company's financial health, which could attract investors and potentially drive the stock price up.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
High Tide showed positive operating cash flow in 2022.
Positive operating cash flow is a good sign for the company's financial health, which could attract investors and potentially drive the stock price up.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Rubicon showed positive operating cash flow in 2022.
Positive operating cash flow is a good sign for the company's financial health, which could attract investors and potentially drive the stock price up.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Auxly has a high net debt-to-sales ratio and could face challenges if cash flow trends don't improve.
High net debt-to-sales ratio indicates potential financial risk, which could deter investors and potentially drive the stock price down.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Canopy Growth has a high net debt-to-sales ratio and could face challenges if cash flow trends don't improve.
High net debt-to-sales ratio indicates potential financial risk, which could deter investors and potentially drive the stock price down.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
HEXO Corp. has a high net debt-to-sales ratio and could face challenges if cash flow trends don't improve.
High net debt-to-sales ratio indicates potential financial risk, which could deter investors and potentially drive the stock price down.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80