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Canopy Growth (NAS:CGC) Operating Income

: $-392.0 Mil (TTM As of Jun. 2023)
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Canopy Growth's Operating Income for the three months ended in Jun. 2023 was $-60.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was $-392.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Canopy Growth's Operating Income for the three months ended in Jun. 2023 was $-60.4 Mil. Canopy Growth's Revenue for the three months ended in Jun. 2023 was $81.8 Mil. Therefore, Canopy Growth's Operating Margin % for the quarter that ended in Jun. 2023 was -73.83%.

Good Sign:

Canopy Growth Corp operating margin is expanding. Margin expansion is usually a good sign.

Canopy Growth's 5-Year average Growth Rate for Operating Margin % was 8.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Canopy Growth's annualized ROC % for the quarter that ended in Jun. 2023 was -18.23%. Canopy Growth's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was -6.00%.


Canopy Growth Operating Income Historical Data

The historical data trend for Canopy Growth's Operating Income 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
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -459.25 -734.14 -466.27 -562.68 -406.24

Canopy Growth Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Operating Income 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 -86.10 -87.92 -86.98 -156.67 -60.42

Canopy Growth Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-392.0 Mil.

* 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.


Canopy Growth  (NAS:CGC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Canopy Growth's annualized ROC % for the quarter that ended in Jun. 2023 is calculated as:

ROC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=-241.684 * ( 1 - -5.07% )/( (1517.979 + 1267.195)/ 2 )
=-253.9373788/1392.587
=-18.23 %

where

Invested Capital(Q: Mar. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1782.575 - 64.777 - ( 571.952 - max(0, 587.475 - 787.294+571.952))
=1517.979

Invested Capital(Q: Jun. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1648.754 - 56.354 - ( 429.827 - max(0, 339.573 - 664.778+429.827))
=1267.195

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Canopy Growth's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2023  Q: Jun. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-23.052/( ( (365.027 + max(35.969, 0)) + (297.46 + max(69.576, 0)) )/ 2 )
=-23.052/( ( 400.996 + 367.036 )/ 2 )
=-23.052/384.016
=-6.00 %

where Working Capital is:

Working Capital(Q: Mar. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(48.834 + 108.822 + 37.831) - (64.777 + 0 + 94.741)
=35.969

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(69.619 + 106.928 + 31.328) - (56.354 + 0 + 81.945)
=69.576

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Canopy Growth's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2023 )/Revenue (Q: Jun. 2023 )
=-60.421/81.835
=-73.83 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Canopy Growth Operating Income Related Terms

Thank you for viewing the detailed overview of Canopy Growth's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Canopy Growth (NAS:CGC) Business Description

Canopy Growth logo
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
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
Hong Judy Eun Joo officer: See Remarks 1 HERSHEY DRIVE, SMITHS FALLS Z4 K7A 0A8
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
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
Greenstar Canada Investment Limited Partnership 10 percent owner 1055 WEST HASTINGS STREET, SUITE 1700, VANCOUVER A1 V6E 2E9
Constellation Brands Canada Holdings Ulc 10 percent owner QUEEN'S MARQUE, 600-1741 LOWER WATER STREET, HALIFAX A5 B3J 0J2
Theresa Yanofsky director 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Thomas Carlton Stewart officer: See Remarks 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Tomas Iv Shipley officer: See Remarks 1 HERSHEY DRIVE, SMITHS FALLS A6 K7A 0A8
Cbg Holdings Llc 10 percent owner 207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
Constellation Capital Llc 10 percent owner 207 HIGH POINT DRIVE, BUILDING 100, VICTOR NY 14564
Greenstar Canada Investment Corp 10 percent owner 1055 WEST HASTINGS STREET, SUITE 1700, VANCOUVER A1 V6E 2E9

Canopy Growth (NAS:CGC) Headlines

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