AMMJ (American Cannabis Co) Effective Interest Rate on Debt %: 32.03% (As of Jun. 2024)


AMMJ American Cannabis Co Inc AMMJ
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What is American Cannabis Co Effective Interest Rate on Debt %?

American Cannabis Co AMMJ -14.29% 12 Effective Interest Rate on Debt % is 32.03% as of Jun. 2024. GuruFocus rates AMMJ with a GF Score™ of 12/100.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. American Cannabis Co's annualized positive value of Interest Expense for the quarter that ended in Jun. 2024 was $0.33 Mil. American Cannabis Co's average total debt for the quarter that ended in Jun. 2024 was $1.04 Mil. Therefore, American Cannabis Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2024 was 32.03%.


American Cannabis Co  (OTCPK:AMMJ) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


American Cannabis Co Effective Interest Rate on Debt % Related Terms


American Cannabis Co Effective Interest Rate on Debt % Historical Data

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The historical data trend for American Cannabis Co's Effective Interest Rate on Debt % 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.

American Cannabis Co Effective Interest Rate on Debt % Chart

American Cannabis Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 2.76 11.49 6.24 9.25

American Cannabis Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Effective Interest Rate on Debt % Get a 7-Day Free Trial 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 9.05 8.66 7.03 2.46 32.03

AMMJ vs CBDW, PM, MO: Effective Interest Rate on Debt % Comparison

For the Tobacco subindustry, American Cannabis Co's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


American Cannabis Co Effective Interest Rate on Debt % vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, American Cannabis Co's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where American Cannabis Co's Effective Interest Rate on Debt % falls into.


AMMJ
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American Cannabis Co Inc AMMJ
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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American Cannabis Co Effective Interest Rate on Debt % Calculation

American Cannabis Co's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2023 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2022 )+Total Debt  (A: Dec. 2023 ))/ count )
=-1  *  -0.114/( (1.304+1.16)/ 2 )
=-1  *  -0.114/1.232
=9.25 %

where

Total Debt  (A: Dec. 2022 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.572 + 0.732
=1.304

American Cannabis Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2024 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Mar. 2024 )+Total Debt  (Q: Jun. 2024 ))/ count )
=-1  *  -0.332/( (1.113+0.96)/ 2 )
=-1  *  -0.332/1.0365
=32.03 %

where

Total Debt  (Q: Mar. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.605 + 0.508
=1.113

Total Debt  (Q: Jun. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.561 + 0.399
=0.96

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Jun. 2024) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 32.03% mean?
American Cannabis Co (AMMJ) has a Effective Interest Rate on Debt % of 32.03% as of Jun. 2024. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on American Cannabis Co and its competitors.
Is American Cannabis Co's Effective Interest Rate on Debt % too high?
American Cannabis Co's current Effective Interest Rate on Debt % is 32.03%. Overall, American Cannabis Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does American Cannabis Co's Effective Interest Rate on Debt % compare to CBDW and PM?
American Cannabis Co's Effective Interest Rate on Debt % of 32.03% can be compared against companies in the Tobacco Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Tobacco Products company?
A good Effective Interest Rate on Debt % depends on the Tobacco Products industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on American Cannabis Co and its competitors. American Cannabis Co's current Effective Interest Rate on Debt % is 32.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Cannabis Co stock overvalued right now?
American Cannabis Co (AMMJ) has a current Effective Interest Rate on Debt % of 32.03%. The current Effective Interest Rate on Debt % is 32.03%. American Cannabis Co's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For American Cannabis Co (AMMJ), the current Effective Interest Rate on Debt % is 32.03% as of Jun. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

American Cannabis Co Business Description

Address 1004 Tejon Street, Colorado Springs, CO, USA, 80903
American Cannabis Co Inc is engaged in the cannabis industry that features end-to-end solutions for businesses operating in the regulated cannabis industry in states and countries where cannabis is regulated and/or has been decriminalized for medical use and/or legalized for recreational use. It provides advisory and consulting services specific to this industry, designs industry-specific products and facilities, and manages a strategic group partnership that offers both exclusive and non-exclusive customer products commonly used in the industry. It is a licensed operator of two medical cannabis dispensaries and a cannabis cultivation facility in Colorado Springs, CO.
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