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.