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 01/10/2025
Weekly Sector Credit – Ag Tech Sector Credit Metrics made a marked improvement compared to last year.
- Of course, we are aware of Agrify and GTI, and if we used average metrics, one data point would be capable of swaying the totals. This is why we rely on medians and quartiles so that outliers do not have an undue impact on the measure. Ag Tech debt/ market cap is now 28x, down from .34x a year ago. The Altman Z score is still poor at -3.22x but much improved from its disastrous -9.47x median last year at this time. Our favorite leverage indicator, total liabilities to market cap, is down to .46x from 1.12x in the previous year. Liquidity has improved as well, with a median free cash flow adjusted current ratio of .46x compared to .07x last year. Both measures continue to indicate a serious need for additional funding, but the situation is not as critical as it was last year.
- We expected that Ag Tech would lag credit quality improvement in its customers, the cultivators but interestingly, the sector seems to be leading the way.
Week ended 01/10/2025
Weekly Sector Credit – Ag Tech Sector Credit Metrics made a marked improvement compared to last year.
- Of course, we are aware of Agrify and GTI, and if we used average metrics, one data point would be capable of swaying the totals. This is why we rely on medians and quartiles so that outliers do not have an undue impact on the measure. Ag Tech debt/ market cap is now 28x, down from .34x a year ago. The Altman Z score is still poor at -3.22x but much improved from its disastrous -9.47x median last year at this time. Our favorite leverage indicator, total liabilities to market cap, is down to .46x from 1.12x in the previous year. Liquidity has improved as well, with a median free cash flow adjusted current ratio of .46x compared to .07x last year. Both measures continue to indicate a serious need for additional funding, but the situation is not as critical as it was last year.
- We expected that Ag Tech would lag credit quality improvement in its customers, the cultivators but interestingly, the sector seems to be leading the way.
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