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 01/26/2024

Credit Stats for the 23 companies in the psychedelic sector are focused on liquidity. The industry is mainly pre-revenue and negative cash flow due to the need to fund research and clinical trials. The accent is firmly on liquidity and market leverage. The median free cash flow adjusted current ratio of -.02x says that more than half of the companies will require additional financing to get through the year. On the positive front, we see eight companies with ratios over 2x, indicating full funding for at least the current year. The industry does not employ much leverage, and median total liabilities to market cap of .29x shows that the market believes the value of these company’s assets (many of which are intangibles) significantly exceeds their liabilities despite a 52-week negative return on their stocks.

Week ended 01/26/2024

Credit Stats for the 23 companies in the psychedelic sector are focused on liquidity. The industry is mainly pre-revenue and negative cash flow due to the need to fund research and clinical trials. The accent is firmly on liquidity and market leverage. The median free cash flow adjusted current ratio of -.02x says that more than half of the companies will require additional financing to get through the year. On the positive front, we see eight companies with ratios over 2x, indicating full funding for at least the current year. The industry does not employ much leverage, and median total liabilities to market cap of .29x shows that the market believes the value of these company’s assets (many of which are intangibles) significantly exceeds their liabilities despite a 52-week negative return on their stocks.

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