Canopy Growth (NAS:CGC) Asset Turnover

: 0.05 (As of Jun. 2023)

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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Canopy Growth's Revenue for the three months ended in Jun. 2023 was $81.8 Mil. Canopy Growth's Total Assets for the quarter that ended in Jun. 2023 was $1,715.7 Mil. Therefore, Canopy Growth's Asset Turnover for the quarter that ended in Jun. 2023 was 0.05.

Asset Turnover is linked to ROE % through Du Pont Formula. Canopy Growth's annualized ROE % for the quarter that ended in Jun. 2023 was -19.27%. It is also linked to ROA % through Du Pont Formula. Canopy Growth's annualized ROA % for the quarter that ended in Jun. 2023 was -6.69%.

Canopy Growth Asset Turnover Historical Data

The historical data trend for Canopy Growth's Asset Turnover 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

Asset Turnover

0.05

0.08

0.10

Canopy Growth Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Asset Turnover																0.02	0.03	0.03	0.03	0.05

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Canopy Growth's Asset Turnover, along with its competitors' market caps and Asset Turnover 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.

Annual Data Quarterly Data

Canopy Growth Asset Turnover Distribution

For the Drug Manufacturers industry and Healthcare sector, Canopy Growth's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Canopy Growth's Asset Turnover falls in comparison to its industry or sector. The grey bar indicates the Asset Turnover's extreme value range as defined by GuruFocus.

Canopy Growth Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Canopy Growth's Asset Turnover for the fiscal year that ended in Mar. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Mar. 2023 )	/	( (Total Assets (A: Mar. 2022 )	+	Total Assets (A: Mar. 2023 ))	/ count )
=	294.456	/	( (4427.536	+	1782.575)	/ 2 )
=	294.456	/	3105.0555
=	0.09

Canopy Growth's Asset Turnover for the quarter that ended in Jun. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Jun. 2023 )	/	( (Total Assets (Q: Mar. 2023 )	+	Total Assets (Q: Jun. 2023 ))	/ count )
=	81.835	/	( (1782.575	+	1648.754)	/ 2 )
=	81.835	/	1715.6645
=	0.05

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Canopy Growth (NAS:CGC) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Canopy Growth's annulized ROE % for the quarter that ended in Jun. 2023 is

	ROE %^**		(Q: Jun. 2023 )
=	Net Income	/	Total Stockholders Equity
=	-114.772	/	595.499
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-114.772 / 327.34)	*	(327.34 / 1715.6645)	*	(1715.6645/ 595.499)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-35.06 %	*	0.1908	*	2.8811
=	ROA %	*	Equity Multiplier
=	-6.69 %	*	2.8811
=	-19.27 %

Note: The Net Income data used here is four times the quarterly (Jun. 2023) net income data. The Revenue data used here is four times the quarterly (Jun. 2023) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Canopy Growth's annulized ROA % for the quarter that ended in Jun. 2023 is

	ROA %		(Q: Jun. 2023 )
=	Net Income	/	Total Assets
=	-114.772	/	1715.6645
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-114.772 / 327.34)	*	(327.34 / 1715.6645)
=	Net Margin %	*	Asset Turnover
=	-35.06 %	*	0.1908
=	-6.69 %

Note: The Net Income data used here is four times the quarterly (Jun. 2023) net income data. The Revenue data used here is four times the quarterly (Jun. 2023) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Canopy Growth Asset Turnover 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 » Asset Turnover

Comparable Companies

Traded in Other Exchanges

11L1:Germany WEED:Canada

Address

1 Hershey Drive, Smiths Falls, ON, CAN, K7A 0A8

Website

https://www.canopygrowth.com

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