Aphria Current Ratio is projected to decrease significantly based on the last few years of reporting. The past year's Current Ratio was at 4.77. The current year Gross Margin is expected to grow to 0.45, whereas Average Assets are forecasted to decline to about 2.5 B. As some conservative investors are getting more into healthcare space, Aphria Inc could be a your radar. We will cover the possibilities of making Aphria into a steady grower in February. In this post, I will also go over a few different drivers affecting Aphria's products and services, and explain how it may impact Aphria investors.
This firm's average rating is Buy from 10 analysts. Our trade advice tool can cross-verify current
analyst consensus on Aphria Inc and to analyze the company potential to grow in the current economic cycle.
Aphria
financial leverage refers to using borrowed capital as a funding source to finance Aphria Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aphria 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 Aphria's 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 Aphria's 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 Aphria's total debt and its cash.
To perform a cash flow analysis of Aphria, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Aphria is receiving and how much cash it distributes out in a given period. The Aphria cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Aphria has an asset utilization ratio of 5.0 percent. This suggests that the company is making $0.05 for each dollar of assets. An increasing asset utilization means that Aphria Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Aphria implied volatility may change after the rise
The coefficient of variation is down to 521.33 as of today. Aphria Inc exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Aphria Inc individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Aphria future systematic risk.
Our Conclusion on Aphria
Whereas many of the other players under the drug manufacturers—specialty & generic industry are still a bit expensive, Aphria may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Aphria 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 Aphria.
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Try AI Portfolio ArchitectRifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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