RE:Understanding Canopy's ProfitThey report in EBITDA, not GAAP, which isn't good. With this high of a market cap I can't help but think something's gotta give.
ChasingWiLan wrote: I'm trying to compare Mettrum's earnings to Canopy's, and I'm amazed that no one questions Canopy's accounting practice.
Can someone help me understand their numbers:
$8.5 Million Revenue
$2.8 Million Expense for Sales
$4.0 Million Expense for Administration
$0.5 Million Expense for R&D
Plus many other expenses.
Then somehow there is still room for
$5.7 Million Profit
The "Biological Assets" hasn't been included because that seems like an accounting trick. It appears they book the inventory and "biological assets" at the expected sales price. The result appears to me that they book sales for everything they grow, before they sell it.
Someone please help me understand?
Currentl Mettrum has 60% of the revenue of Canopy and only 20% of the Market Cap. Hoping understanding thebearnings of both better will help me decide how undervalued Mettrum is.
Thanks,
GLTA