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Canopy Growth (NAS:CGC) Long-Term Debt & Capital Lease Obligation

: $438.2 Mil (As of Dec. 2023)
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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Canopy Growth's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $438.2 Mil.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Canopy Growth's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $438.2 Mil. Canopy Growth's Total Assets for the quarter that ended in Dec. 2023 was $1,013.5 Mil. Canopy Growth's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2023 was 0.43.

Canopy Growth's LT-Debt-to-Total-Asset increased from Dec. 2022 (0.28) to Dec. 2023 (0.43). It may suggest that Canopy Growth is progressively becoming more dependent on debt to grow their business.


Canopy Growth Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Canopy Growth's Long-Term Debt & Capital Lease Obligation can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Canopy Growth Annual Data
Trend Jul13 Dec14 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Long-Term Debt & Capital Lease Obligation
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 629.92 407.64 1,326.52 1,258.15 607.04

Canopy Growth Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Long-Term Debt & Capital Lease Obligation Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 613.39 607.04 652.98 518.26 438.22

Canopy Growth Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.


Canopy Growth  (NAS:CGC) Long-Term Debt & Capital Lease Obligation Explanation

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Canopy Growth's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2023 is calculated as:

LT-Debt-to-Total-Asset (Q: Dec. 2023 )=Long-Term Debt & Capital Lease Obligation (Q: Dec. 2023 )/Total Assets (Q: Dec. 2023 )
=438.219/1013.529
=0.43

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the company’s earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet


Canopy Growth Long-Term Debt & Capital Lease Obligation Related Terms

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Canopy Growth (NAS:CGC) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Canopy Growth Corp (NAS:CGC) » Definitions » Long-Term Debt & Capital Lease Obligation
Traded in Other Exchanges
Address
1 Hershey Drive, Smiths Falls, ON, CAN, K7A 0A8
Canopy Growth, headquartered in Smiths Falls, Canada, cultivates and sells medicinal and recreational cannabis, and hemp, through a portfolio of brands that include Doja, 7ACRES, Tweed, and Deep Space. Its non-THC products include sports drink BioSteel, skincare products under This Works, Martha Stewart CBD, and Storz & Bickel vaporizers. Canopy growth is attempting to merge its U.S. assets into a separately operated holding company, Canopy USA, which will not be consolidated into the Canadian company's financials.
Executives
Theresa Yanofsky director 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
David Angelo Lazzarato director 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Judy Schmeling director C/O HSN, INC., 1 HSN DRIVE, ST.PETERSBURG FL 33729
Hong Judy Eun Joo officer: See Remarks 1 HERSHEY DRIVE, SMITHS FALLS Z4 K7A 0A8
David Eric Klein director, officer: Chief Executive Officer 207 HIGH POINT DRIVE, VICTOR NY 14564
Thomas Carlton Stewart officer: See Remarks 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Christelle Gedeon officer: See Remarks 3 HOLLYHOCK COURT, TORONTO Z4 M3B 0B4
Garth Hankinson director C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BLDG. 100, VICTOR NY 14564
Greenstar Ii Holdings Llc 10 percent owner 207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
Greenstar Ii Llc 10 percent owner 207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
Rade Nikola Kovacevic officer: President 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Phillip Stephen Shaer officer: Chief Legal Officer 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Grant Julious C. Jr officer: Chief Commercial Officer 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Sabia James A. Jr. director C/O CONSTELLATION BRANDS, INC., 207 HIGH POINT DRIVE, BLDG. 100, VICTOR NY 14564
Tomas Iv Shipley officer: See Remarks 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8