Question
Casper Sleep Inc. (NYSE: CSPR) is a mattress company launched in 2014 that has a unique direct-to-consumer business model. It sells its mattresses online and
Casper Sleep Inc. (NYSE: CSPR) is a mattress company launched in 2014 that has a unique direct-to-consumer business model. It sells its mattresses online and in retail showrooms. Its mattresses are made from a variety of foams and have been popular with consumers. In November 2021, Casper announced that it is seeking to raise $50 million in common stock and another $100 million through preferred stock, debt, and other offerings. Its Initial Public Offering (IPO) was in February 2020, when its common stock was issued for $12 per share. Its common stock price as of the close of business on November 4, 2021, was $4.13. As of June 30, 2021, Casper had $153.9 million in current assets and $157.3 million in current liabilities. Its total assets were $211.1 million and total liabilities were $233.2 million, also as of June 30, 2021. Its revenue for the six months ended June 30, 2021, was $279.4 million, while its cost of goods sold and operating expenses for that same six-month period were $140.2 million and $191.0 million, respectively. Its revenue for the six-month period ended June 30, 2020, was $223.2 million, while its cost of goods sold and operating expenses for that same six-month period were $113.2 million and $165.1 million, respectively. (For further detail, see its 10-Q Quarterly Report for the second quarter of 2021 at this link.) Questions:
What was Caspers current ratio as of June 30, 2021? Its debt ratio as of the same date?
What do these ratios indicate?
How will the additional issuance of common stock impact Caspers current ratio and debt ratio?
Its balance sheet? (You do not need to make any calculations to answer this question.)
What was Caspers net income(loss) for the six months ended June 30, 2021? For the six months ended June 30, 2020?
What risks do you think Casper faces over the next year? As an investor, do you think you would invest in Casper? Why or why not?
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