Affirm Hldgs Inc Stock
€36.88
Your prediction
Affirm Hldgs Inc Stock
Pros and Cons of Affirm Hldgs Inc in the next few years
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The analysis provided is generated by an artificial intelligence system and is provided for informational purposes only. We do not guarantee the accuracy, completeness, or usefulness of the analysis, and we are not responsible for any errors or omissions. Use of the analysis is at your own risk.Affirm Holdings Inc, a fintech company known for its buy now, pay later services, presents a financial landscape that elicits both optimism and caution. An initial glance at the financial statements suggests a company with robust assets and significant market presence, underscored by concerns rooted in profitability and debt levels.
Delving deeper, the balance sheet figures for the past three years show a growing asset base, with total assets increasing consistently from approximately $4.87 billion in 2021 to $8.16 billion in 2023. This expansion signals an aggressive growth strategy, which is further evidenced by an increase in cash and short-term investments from about $1.47 billion to over $2.07 billion in the same period. Most notable is the significant net receivables, ballooning from $2.03 billion in 2021 to $4.40 billion in 2023, indicative of the company's core business in extending credit for consumer purchases.
On the liability front, total liabilities have also risen markedly from roughly $2.29 billion in 2021 to $5.62 billion in 2023, partly due to a substantial increase in long-term debt from $1.91 billion to $3.58 billion. Although this supports expansion, it places the company under substantial debt pressure. Equity figures highlight the company's struggles to maintain profitability, with retained earnings at a deficit of approximately $2.59 billion in 2023.