GREY:CHALF - Post by User
Comment by
Boddingtonon Nov 14, 2021 4:27pm
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Post# 34125141
RE:Assets exceed liabilities
RE:Assets exceed liabilities WRONG AGAIN
How Strong/weak Is Chalice Brands' Balance Sheet?
According to the last reported balance sheet, Chalice Brands had liabilities of US$7.86m due within 10 months, and liabilities of US$21.4m due beyond 12 months. Offsetting these obligations, it had cash of US$1.83m as well as receivables valued at US$2.06m due within 12 months. So its liabilities total US$25.4m more than the combination of its cash and short-term receivables.This deficit is considerable relative to its market capitalization of US$31.3m, so it does suggest shareholders should keep an eye on Chalice Brands' use of debt. Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide. The most recent profitability was Negative 37% (-37%). This is definitely not good