Analysis and Recommendations Based on Data
Ratio analysis for 2017 to determine HEXO’s financial strength in the light of a potential expansion and to assess their financing needs and options; you can ignore the payback period (as we haven’t discussed this in the course and all the alternatives will meet the 4 years)
Compare additional specific ratios with competitors (based on Exhibit 6): revenue per gram; cost per gram; contribution margin
Projected income statements for the greenhouse construction
Projected balance sheets for the greenhouse construction
For this part, you will have to decide on the financing type in order to complete the balance sheet; make your decision explicit
Note that the income statements and balance sheets for the acquisition of Green Prosper have been provided in the excel template below
Qualitatively assess the pro’s and con’s for one or two opportunities for future expansions into newly emerging and growing markets (brief). Pick one or two of the listen options which you think are a good fit for HEXO.
