margin strength cannabis, Price, quantity key metrics for cannabis sector’s financial health

(This story is part of MJBizDaily’s premium subscription service, Investor Intelligence.)

We’ve all heard the idiom “mind your p’s and q’s.”

One theory among many is that p’s and q’s references pubs in England where the bartender tallied all the pints and quarts sold – and, if he liked you, your quarts became pints on the bill.

But in the business world, p’s and q’s speaks to how we drive revenue: price and quantity.

Investors focus a lot on the composition of price versus units because changes in price have a disproportionate impact to margins, and volume increases along with price increases indicate strength in the underlying demand.

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