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 01/12/2024
The Software/Media demonstrates the weakness of standard credit metrics. The fifteen companies in the Software/Media sector continue to suffer from critically low liquidity with a median free cash flow adjusted current ratio of -.02x, indicating that over half of the companies will need additional financing to get through the year. Our favorite leverage indicator, total liabilities to market cap, is virtually unchanged since the end of the year at .61x., indicating additional value coverage of debt. However, the median funds from operations continues to be negative even for the top 25% of the sector, and the negative cash flow reduces the availability of debt financing.
Week ended 01/12/2024
The Software/Media demonstrates the weakness of standard credit metrics. The fifteen companies in the Software/Media sector continue to suffer from critically low liquidity with a median free cash flow adjusted current ratio of -.02x, indicating that over half of the companies will need additional financing to get through the year. Our favorite leverage indicator, total liabilities to market cap, is virtually unchanged since the end of the year at .61x., indicating additional value coverage of debt. However, the median funds from operations continues to be negative even for the top 25% of the sector, and the negative cash flow reduces the availability of debt financing.
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