Safety Shot's 2024 Earnings: A Deep Dive into the Loss

Safety Shot, Inc. (NASDAQ:SHOT) has just released its full-year 2024 earnings, and the results are not pretty. The company reported a loss per share of US$0.89, a significant increase from the US$0.48 loss per share in FY 2023. This widening loss per share is a clear indicator of the company's operational inefficiencies and strategic missteps over the past year. Let's break down the key factors contributing to this increased loss and explore how these factors might influence investor confidence and future stock performance.



First, let's look at the primary factors contributing to the increased loss per share. One of the most significant factors is the increase in the number of shares outstanding. The company's shares outstanding have increased by 89.05% year-over-year and by 8.11% quarter-over-quarter. This dilution of shares can lead to a higher loss per share, as the same amount of loss is spread over a larger number of shares. For instance, the company's current share class stands at 66.58 million shares, which is a substantial increase from previous periods.

Additionally, the company's financial ratios and margins provide further insight into its financial health. The operating margin stands at -5,991.40%, and the pretax margin is -6,896.60%, indicating significant operational inefficiencies and high costs relative to revenue. The return on equity (ROE) is -1,457.29%, and the return on invested capital (ROIC) is -366.67%, both of which are extremely negative, suggesting that the company is not generating value for its shareholders or investors.

The company's liquidity ratios also raise concerns. The current ratio is 0.27, and the quick ratio is 0.10, both of which are well below the industry standard of 1.0, indicating potential liquidity issues. The company's debt-to-equity ratio is not available, but the net cash position is -$4.99 million, or -$0.08 per share, suggesting that the company may be struggling with its financial obligations.

These factors can significantly influence investor confidence and future stock performance. Investors may view the increased loss per share and the high share dilution as red flags, leading to a decrease in confidence in the company's ability to generate profits and return value to shareholders. The negative financial ratios and liquidity concerns further exacerbate these issues, potentially leading to a sell-off of the stock and a decrease in its price.

For example, the stock price has decreased by -82.53% in the last 52 weeks, and the beta is 1.83, indicating higher price volatility compared to the market average. The relative strength index (RSI) is 35.24, suggesting that the stock is in an oversold condition, which could lead to further price declines if investor sentiment does not improve.



In summary, the increased loss per share for Safety Shot, Inc. is primarily due to share dilution, high operational costs, and negative financial ratios. These factors can erode investor confidence and negatively impact future stock performance, as investors may view the company as a risky investment with limited potential for growth and profitability. It remains to be seen whether Safety Shot can turn things around in the coming years, but for now, the outlook is bleak.