OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
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Credit Tracker By Industry Sector
Credit Tracker By Sector
Credit ratings are not currently available for public cannabis companies leaving companies, lenders and investors with a gap of information. The Viridian Cannabis Credit Tracker fills this gap. The model uses 11 market and financial statement variables to discern 4 key credit factors: Liquidity, Leverage, Profitability, and Size, to provide credit/liquidity analysis for over 370 public Cannabis/Hemp companies.
Week ended 01/13/2023
The Viridian Credit Tracker utilizes 11 different bespoke credit ratios to evaluate four aspects of credit quality: Liquidity, Leverage, Profitability, and Size. Given the constrained capital markets, we are keeping a close eye on liquidity. This week, one statistic that caught our eye was debt to market cap of the 103 Cultivation & Retail companies in the Viridian database. The median is now .95x, up from about .35x a year ago. The market is ascribing less asset value coverage to the sectors debt. The ratio is still moderate and consistent with single B rated companies. We would be concerned if the ratio rose above 2.5x.
Week ended 01/13/2023
The Viridian Credit Tracker utilizes 11 different bespoke credit ratios to evaluate four aspects of credit quality: Liquidity, Leverage, Profitability, and Size. Given the constrained capital markets, we are keeping a close eye on liquidity. This week, one statistic that caught our eye was debt to market cap of the 103 Cultivation & Retail companies in the Viridian database. The median is now .95x, up from about .35x a year ago. The market is ascribing less asset value coverage to the sectors debt. The ratio is still moderate and consistent with single B rated companies. We would be concerned if the ratio rose above 2.5x.
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