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 10/31/2025
Weekly Sector Credit – Cultivation and Retail Sector
- The Chart below shows the credit metrics for the Cultivation and Retail sector.
- Several key aspects jump out:
- Liquidity is generally reasonable. The median free cash flow-adjusted current ratio of 1.01x indicates that more than half of the 74 companies have sufficient liquidity to pay all short-term liabilities without additional funding. Importantly, however, the lowest quartile figure of 0.25x indicates that at least ¼ of the companies (19 companies) have serious liquidity issues and will require asset sales or new funding to survive the next 12 months.
- The median total liabilities to market cap ratio of 1.42x continues to reflect a market perception of strong asset value coverage of liabilities.
- There continues to be a leverage problem, with over 25% of the sample having debt/ 2025 EBITDA of over 3.68x, a number that is not sustainable even post-S3. The hope is that S3 will raise stock prices sufficiently to allow a re-equitization of the sector.
Week ended 10/31/2025
Weekly Sector Credit – Cultivation and Retail Sector
- The Chart below shows the credit metrics for the Cultivation and Retail sector.
- Several key aspects jump out:
- Liquidity is generally reasonable. The median free cash flow-adjusted current ratio of 1.01x indicates that more than half of the 74 companies have sufficient liquidity to pay all short-term liabilities without additional funding. Importantly, however, the lowest quartile figure of 0.25x indicates that at least ¼ of the companies (19 companies) have serious liquidity issues and will require asset sales or new funding to survive the next 12 months.
- The median total liabilities to market cap ratio of 1.42x continues to reflect a market perception of strong asset value coverage of liabilities.
- There continues to be a leverage problem, with over 25% of the sample having debt/ 2025 EBITDA of over 3.68x, a number that is not sustainable even post-S3. The hope is that S3 will raise stock prices sufficiently to allow a re-equitization of the sector.
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