Artelo Stock Story

ARTL

Stock

USD 3.79 0.07 1.88%

Macroaxis Story

Artelo Biosciences is scheduled to announce its earnings tomorrow. The next fiscal year end is expected on the 5th of December 2022. Artelo Biosciences Market Capitalization is relatively stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 27.68 Million. Tangible Asset Value is expected to hike to about 13.1 M this year, although the value of Earnings before Tax will most likely fall to (6.9 M). While some of us are becoming more enthusiastic about healthcare space, let's summarize Artelo Biosciences in greater detail to make a better estimate of its debt utilization. We will summarize if it could be a much better year for Artelo Biosciences shareholders.

Published over three weeks ago

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Is Artelo Biosciences (NASDAQ:ARTL) having difficulty to pay out its debt?

This firm currently holds 90 K in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest the company is not taking enough advantage from borrowing. The company has a current ratio of 23.48, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Artelo Biosciences until it has trouble settling it off, either with new capital or with free cash flow. So, Artelo Biosciences' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Artelo Biosciences sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Artelo to invest in growth at high rates of return. When we think about Artelo Biosciences' use of debt, we should always consider it together with cash and equity.

Artelo Biosciences financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Artelo Biosciences, including all of Artelo Biosciences's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Artelo Biosciences assets, the company is considered highly leveraged. Understanding the composition and structure of overall Artelo Biosciences debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

Understanding Artelo Total Liabilities

Artelo Biosciences liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Artelo Biosciences has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Artelo Biosciences balance sheet include debt obligations and money owed to different Artelo Biosciences vendors, workers, and loan providers. Below is the chart of Artelo short long-term liabilities accounts currently reported on its balance sheet.

You can use Artelo Biosciences financial leverage analysis tool to get a better grip on understanding its financial position

How important is Artelo Biosciences's Liquidity

Artelo Biosciences financial leverage refers to using borrowed capital as a funding source to finance Artelo Biosciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Artelo Biosciences financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Artelo Biosciences's total debt and its cash.

Detailed Perspective On Artelo Biosciences

Artelo Biosciences reported the previous year's revenue of 212.82 M. Net Loss for the year was (12.11 M) with profit before overhead, payroll, taxes, and interest of 83.01 M.

Liabilities Breakdown

535.8 K

Current Liabilities

Long-Term Liabilities

	Total Liabilities	581,903
	Current Liabilities	535,809
	Long-Term Liabilities	59,947.37

Will Artelo Biosciences continue to go bonkers?

New coefficient of variation indicator falls down to -2402.51. Possible price surge? Artelo Biosciences exhibits very low volatility with skewness of 0.5 and kurtosis of 4.28. However, we advise investors to further study Artelo Biosciences technical indicators to make sure all market info is available and is reliable. Artelo Biosciences is a potential penny stock. Although Artelo Biosciences may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Artelo Biosciences. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Artelo instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Conclusion on Artelo Biosciences

While some firms in the biotechnology industry are either recovering or due for a correction, Artelo may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither take over new shares of Artelo nor quit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Artelo Biosciences.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Artelo Biosciences. Please refer to our Terms of Use for any information regarding our disclosure principles.

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