Right On Brands Inc Financials
Financial Health Signals
Right On Brands Inc passes 6 of 9 financial strength tests. 2 of 4 profitability signals pass, all 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Right On Brands Inc generates $-7.58 in operating cash flow (-$66K OCF vs $9K net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Right On Brands Inc earns $-11.6 in operating income for every $1 of interest expense (-$136K vs $12K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
This page shows Right On Brands Inc (RTON) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 12 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Right On Brands Inc generated $1.1M in revenue in fiscal year 2023. This represents an increase of 13.9% from the prior year.
Right On Brands Inc's EBITDA was -$130K in fiscal year 2023, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 160.2% from the prior year.
Right On Brands Inc reported $9K in net income in fiscal year 2023. This represents an increase of 103.4% from the prior year.
Right On Brands Inc held $33K in cash against $0 in long-term debt as of fiscal year 2023.
Right On Brands Inc had 6.22B shares outstanding in fiscal year 2023.
Right On Brands Inc's gross margin was 53.3% in fiscal year 2023, indicating the percentage of revenue retained after direct costs. This is up 9.2 percentage points from the prior year.
Right On Brands Inc's operating margin was -12.0% in fiscal year 2023, reflecting core business profitability. This is down 6.4 percentage points from the prior year.
Right On Brands Inc's net profit margin was 0.8% in fiscal year 2023, showing the share of revenue converted to profit. This is up 26.5 percentage points from the prior year.
RTON Income Statement
| Metric | Q3'23 | Q2'23 | Q1'23 | Q3'22 | Q2'22 | Q1'22 | Q3'21 | Q2'21 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $342K+4.0% | $329K-19.0% | $406K+56.1% | $260K+7.8% | $241K-21.8% | $308K-9.1% | $339K+43.1% | $237K |
| Cost of Revenue | $159K+12.0% | $142K-23.8% | $186K+23.9% | $150K+8.2% | $139K+9.0% | $127K-38.6% | $208K+10.7% | $188K |
| Gross Profit | $183K-2.0% | $187K-14.8% | $220K+100.3% | $110K+7.2% | $102K-43.5% | $181K+37.5% | $132K+166.0% | $50K |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $144K-27.5% | $198K-0.1% | $198K+41.8% | $140K-3.0% | $144K+13.8% | $127K+58.6% | $80K-5.5% | $84K |
| Operating Income | -$15K+68.0% | -$45K-226.2% | -$14K+77.9% | -$63K+21.3% | -$80K-1565.4% | $5K-76.7% | $23K+126.2% | -$90K |
| Interest Expense | $5K+75.0% | $3K-83.0% | $18K+544.4% | $3K-16.5% | $3K+38.0% | $2K-7.8% | $3K-75.0% | $11K |
| Income Tax | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Income | N/A | -$92K-15.9% | -$79K-14.2% | -$69K+27.8% | -$96K-149.6% | $194K+218.2% | -$164K-844.0% | $22K |
| EPS (Diluted) | N/A | N/A | N/A | N/A | $0.00 | $0.00 | N/A | $0.00 |
RTON Balance Sheet
| Metric | Q3'23 | Q2'23 | Q1'23 | Q3'22 | Q2'22 | Q1'22 | Q3'21 | Q2'21 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $212K-4.7% | $222K-3.3% | $230K+24.0% | $185K-26.1% | $251K+1.6% | $247K+17.8% | $210K+5.5% | $199K |
| Current Assets | $176K-4.4% | $184K-0.1% | $185K+47.1% | $126K-31.7% | $184K+6.6% | $172K+43.5% | $120K+17.7% | $102K |
| Cash & Equivalents | $59K+192.5% | $20K-53.7% | $44K+193.1% | $15K+21.5% | $12K-19.3% | $15K-70.3% | $51K+217.8% | $16K |
| Inventory | $101K-25.8% | $136K+27.0% | $107K+12.6% | $95K-39.0% | $156K+10.1% | $142K+116.1% | $66K-20.6% | $83K |
| Accounts Receivable | $13K-48.6% | $24K-19.1% | $30K | N/A | N/A | $0 | N/A | N/A |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $1.0M+18.0% | $863K+7.1% | $806K+11.5% | $723K+0.5% | $719K+16.2% | $619K-20.9% | $782K-27.7% | $1.1M |
| Current Liabilities | $1.0M+18.5% | $855K+7.9% | $793K+13.6% | $698K+1.4% | $688K+18.2% | $582K-20.6% | $734K-30.2% | $1.1M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | $496K+43.0% | $347K | N/A |
| Total Equity | -$806K-21.2% | -$665K-10.7% | -$601K-11.8% | -$537K-14.8% | -$468K-25.8% | -$372K+35.0% | -$573K+35.1% | -$883K |
| Retained Earnings | -$16.2M-1.4% | -$15.9M-0.6% | -$15.8M-0.6% | -$15.7M-0.4% | -$15.7M-0.6% | -$15.6M+1.3% | -$15.8M-1.1% | -$15.6M |
RTON Cash Flow Statement
| Metric | Q3'23 | Q2'23 | Q1'23 | Q3'22 | Q2'22 | Q1'22 | Q3'21 | Q2'21 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $35K+161.4% | -$58K-98.5% | -$29K-182.9% | $35K+140.4% | -$87K-307.7% | -$21K-160.5% | $35K+182.0% | -$43K |
| Capital Expenditures | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Free Cash Flow | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Investing Cash Flow | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Financing Cash Flow | $4K-89.3% | $34K-13.8% | $40K+222.2% | -$32K-138.7% | $84K+891.1% | $8K | $0-100.0% | $25K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
RTON Financial Ratios
| Metric | Q3'23 | Q2'23 | Q1'23 | Q3'22 | Q2'22 | Q1'22 | Q3'21 | Q2'21 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 53.5%-3.3pp | 56.9%+2.7pp | 54.1%+11.9pp | 42.2%-0.2pp | 42.4%-16.3pp | 58.7%+19.9pp | 38.8%+17.9pp | 20.9% |
| Operating Margin | -4.3%+9.6pp | -13.8%-10.4pp | -3.4%+20.8pp | -24.3%+8.9pp | -33.2%-35.0pp | 1.8%-5.1pp | 6.9%+44.7pp | -37.8% |
| Net Margin | N/A | -27.9%-8.4pp | -19.5%+7.2pp | -26.7%+13.2pp | -39.8%-102.7pp | 62.8%+111.2pp | -48.4%-57.6pp | 9.3% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | N/A | -41.3%-6.8pp | -34.5%+2.9pp | -37.4%+0.9pp | -38.3%-116.8pp | 78.5%+156.8pp | -78.3%-89.3pp | 11.1% |
| Current Ratio | 0.17-0.0 | 0.22-0.0 | 0.23+0.1 | 0.18-0.1 | 0.27-0.0 | 0.30+0.1 | 0.16+0.1 | 0.10 |
| Debt-to-Equity | -1.26+0.0 | -1.30+0.0 | -1.340.0 | -1.34+0.2 | -1.54-0.2 | -1.33-0.7 | -0.61+0.6 | -1.23 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Note: Shareholder equity is negative (-$521K), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.23), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Right On Brands Inc's annual revenue?
Right On Brands Inc (RTON) reported $1.1M in total revenue for fiscal year 2023. This represents a 13.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Right On Brands Inc's revenue growing?
Right On Brands Inc (RTON) revenue grew by 13.9% year-over-year, from $997K to $1.1M in fiscal year 2023.
Is Right On Brands Inc profitable?
Yes, Right On Brands Inc (RTON) reported a net income of $9K in fiscal year 2023, with a net profit margin of 0.8%.
What is Right On Brands Inc's earnings per share (EPS)?
Right On Brands Inc (RTON) reported diluted earnings per share of $0.00 for fiscal year 2023. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Right On Brands Inc's EBITDA?
Right On Brands Inc (RTON) had EBITDA of -$130K in fiscal year 2023, measuring earnings before interest, taxes, depreciation, and amortization.
What is Right On Brands Inc's gross margin?
Right On Brands Inc (RTON) had a gross margin of 53.3% in fiscal year 2023, indicating the percentage of revenue retained after direct costs of goods sold.
What is Right On Brands Inc's operating margin?
Right On Brands Inc (RTON) had an operating margin of -12.0% in fiscal year 2023, reflecting the profitability of core business operations before interest and taxes.
What is Right On Brands Inc's net profit margin?
Right On Brands Inc (RTON) had a net profit margin of 0.8% in fiscal year 2023, representing the share of revenue converted into profit after all expenses.
What is Right On Brands Inc's operating cash flow?
Right On Brands Inc (RTON) generated -$66K in operating cash flow during fiscal year 2023, representing cash generated from core business activities.
What are Right On Brands Inc's total assets?
Right On Brands Inc (RTON) had $207K in total assets as of fiscal year 2023, including both current and long-term assets.
How many shares does Right On Brands Inc have outstanding?
Right On Brands Inc (RTON) had 6.22B shares outstanding as of fiscal year 2023.
What is Right On Brands Inc's current ratio?
Right On Brands Inc (RTON) had a current ratio of 0.23 as of fiscal year 2023, which is below 1.0, which may suggest potential liquidity concerns.
What is Right On Brands Inc's debt-to-equity ratio?
Right On Brands Inc (RTON) had a debt-to-equity ratio of -1.35 as of fiscal year 2023, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Right On Brands Inc's return on assets (ROA)?
Right On Brands Inc (RTON) had a return on assets of 4.2% for fiscal year 2023, measuring how efficiently the company uses its assets to generate profit.
What is Right On Brands Inc's cash runway?
Based on fiscal year 2023 data, Right On Brands Inc (RTON) had $33K in cash against an annual operating cash burn of $66K. This gives an estimated cash runway of approximately 6 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
Why is Right On Brands Inc's debt-to-equity ratio negative or unusual?
Right On Brands Inc (RTON) has negative shareholder equity of -$521K as of fiscal year 2023, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Right On Brands Inc's Piotroski F-Score?
Right On Brands Inc (RTON) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Right On Brands Inc's earnings high quality?
Right On Brands Inc (RTON) has an earnings quality ratio of -7.58x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Right On Brands Inc cover its interest payments?
Right On Brands Inc (RTON) has an interest coverage ratio of -11.6x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.