The company has 95.47
M in debt with debt to equity (D/E) ratio of 0.38, which is OK given its current industry classification.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Organigram Hlds has an asset utilization ratio of 15.37 percent. This implies that the company is making $0.15 for each dollar of assets. An increasing asset utilization means that Organigram Hlds is more efficient with each dollar of assets it utilizes for everyday operations.
OrganiGram Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of OrganiGram Holdings, including all of OrganiGram Holdings'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 OrganiGram Holdings assets, the company is considered highly leveraged. Understanding the
composition and structure of overall OrganiGram Holdings 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 OrganiGram Total Debt
OrganiGram Holdings liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. OrganiGram Holdings 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 OrganiGram Holdings balance sheet include debt obligations and money owed to different OrganiGram Holdings vendors, workers, and loan providers. Below is the chart of OrganiGram main long-term debt accounts currently reported on its balance sheet.
You can use OrganiGram Holdings
financial leverage analysis tool to get a better grip on understanding its financial position
How important is OrganiGram Holdings's Liquidity
OrganiGram Holdings
financial leverage refers to using borrowed capital as a funding source to finance OrganiGram Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. OrganiGram Holdings 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. Financial leverage can amplify the potential profits to OrganiGram Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of OrganiGram Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between OrganiGram Holdings's total debt and its cash.
What is driving OrganiGram Holdings Investor Appetite?
Organigram Hlds reported the last year's revenue of 64.29
M. Reported Net Loss for the year was (134.69
M) with loss before taxes, overhead, and interest of (50.4
M).
Our perspective of the current Organigram Hlds rise
Current jensen alpha is at 1.02.
As of the 13th of April 2021, Organigram Hlds holds the Semi Deviation of 8.24,
risk adjusted performance of 0.1076, and Coefficient Of Variation of 850.02. Compared to
fundamental indicators, the
technical analysis model allows you to check existing technical drivers of Organigram Hlds, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Organigram Hlds, which can be compared to its competitors. Please check
Organigram Hlds information ratio, as well as the
relationship between the value at risk and
expected short fall to decide if Organigram Hlds is priced some-what accurately, providing market reflects its current price of 3.05 per share. Given that Organigram Hlds has
jensen alpha of 1.02, we recommend you to check out Organigram Hlds's recent market performance to make sure the company can sustain itself at a future point.
While some firms under the drug manufacturers—specialty & generic industry are still a bit expensive, Organigram Hlds may offer a potential longer-term growth to stockholders. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Organigram as the current risk-reward utility is not appealing enough. 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 Organigram Hlds.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste 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 OrganiGram Holdings. Please refer to our
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