OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Quick
Links
More Charts
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 01/20/2023
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. It is striking that none of the twelve sectors we track have median free cash flow adjusted current ratios over 1.0x. This measure of liquidity takes into account the coverage of current liabilities like payables and maturing debt and factors in annualized free cash flow. The median score below 1.0x says that around 158 companies in our database (1/2 of the 315 total) will likely need financing this year. This extraordinary result, given the current tightness of the cannabis capital markets, ratifies our belief that a significant number of restructurings or failures will occur this year.
Week ended 01/20/2023
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. It is striking that none of the twelve sectors we track have median free cash flow adjusted current ratios over 1.0x. This measure of liquidity takes into account the coverage of current liabilities like payables and maturing debt and factors in annualized free cash flow. The median score below 1.0x says that around 158 companies in our database (1/2 of the 315 total) will likely need financing this year. This extraordinary result, given the current tightness of the cannabis capital markets, ratifies our belief that a significant number of restructurings or failures will occur this year.
This Chart is Only Available to Higher Tier Memberships
Please Purchase a Premium or Enterprise membership to see more.
