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 04/07/2023
The Viridian Credit Tracker utilizes 11 different bespoke credit ratios to evaluate four aspects of credit quality: Liquidity, Leverage, Profitability, and Size. We are looking at the extreme quartiles of our ratios to identify credit stresses. The highest 25% of the Cultivation & Retail sector now has Total Liabilities to market cap of over 6.44x, which indicates significant credit stress. The group’s median cash flow adjusted current ratios is only .83x, indicating a likely need for additional funding during the year. The lowest 25% of the 95 company group has a liquidity measure of under .07x, indicating severe stress. Based on these numbers, we expect around 10-12 companies in this group to become distressed during the year.
Week ended 04/07/2023
The Viridian Credit Tracker utilizes 11 different bespoke credit ratios to evaluate four aspects of credit quality: Liquidity, Leverage, Profitability, and Size. We are looking at the extreme quartiles of our ratios to identify credit stresses. The highest 25% of the Cultivation & Retail sector now has Total Liabilities to market cap of over 6.44x, which indicates significant credit stress. The group’s median cash flow adjusted current ratios is only .83x, indicating a likely need for additional funding during the year. The lowest 25% of the 95 company group has a liquidity measure of under .07x, indicating severe stress. Based on these numbers, we expect around 10-12 companies in this group to become distressed during the year.
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