quinlash once again shows his lack if financial and investment acumen.
Yes - goodwill is a common and standard practice.
The short story is that if a company is valued at $750,000 - a negotiated amount may be agreed upon for an additional payment in lieu of an established customer base, future sales etc - with the acquirer paying $1,000,000. The $250,000 is classified as an intangible asset - and it is 'depreciated' over the next few years, rather than as a one time direct expense.
Book value is the amount of cash leftover if a company were to close and liquidate. Assets - liabilities = book value, the amount leftover.
If Tilray were to close its doors and liquidate, it has approx $4 billion in assets and $1 billion debt - and at an uneducated glance suggests that it has $3 billion in Book Value.
However, given that Tilray has $2 billion in goodwill included in the $4 billion total assets - the true number at liquidation would be $2 billion in assets minus $1 billion in debt - or $1 billion in cash book value.
The breakdown of the goodwil is irrelevant to the calculation, quinlash is using the inflated asset value - goodwill has no cash value.
Does he think that Tilray can sell 'goodwill' for cash?
Its nonsense
Post by
quinlashon Jul 18, 2024 4:57pm 
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Post# 36139122
Reporting of Goodwill
If you have questions about how Goodwill is reported on the reports I would highly suggest relying on Google and reviewing the financials yourself before taking it for granted that something on a stockforum is perfectly correct.
Here is a link to explains much of it, more is available if you search it out.
https://gocardless.com/guides/posts/how-does-goodwill-affect-financial-statements/
Tilray Brands picked up HEXO Corp. HEXO carried a large collections of patents, specifically for the infusion of Cannabis Oil into edibles and drinks. I would imagine some of the goodwill on Tilray's report is tied to this.
I have sent an email into Tilray's Investor Relations group to ask for a breakdown as to what exactly their Goodwill dollar amount is made up of, I can share that once they respond. You can also do the same (write in) if you care to. Their contact details are on their website.