RE:Weed earnings today , let’s see some positive outlook There are major differences ...
Like NO debt burden and got their cash burn managed controlled along with 8+ yrs of money to support business model ... Downside? revenue DECLINE
Canopy ?????????????
How Well Is Cronos Group Growing?
Cronos Group reduced its cash burn by 19% during the last year, which points to some degree of discipline. But the revenue dip of 4.9% in the same period was a bit concerning. In light of the data above, we're fairly sanguine about the business growth trajectory. While the past is always worth studying, it is the future that matters most of all. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.
How Easily Can Cronos Group Raise Cash?
There's no doubt Cronos Group seems to be in a fairly good position, when it comes to managing its cash burn, but even if it's only hypothetical, it's always worth asking how easily it could raise more money to fund growth. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Many companies end up issuing new shares to fund future growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.
Cronos Group has a market capitalisation of US$721m and burnt through US$101m last year, which is 14% of the company's market value. As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution.
So, Should We Worry About Cronos Group's Cash Burn?
On this analysis of Cronos Group's cash burn, we think its cash runway was reassuring, while its falling revenue has us a bit worried. Based on the factors mentioned in this article, we think its cash burn situation warrants some attention from shareholders, but we don't think they should be worried