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 11/08/2024
Weekly Sector Credit – Cultivation and Retail
- The sector has clearly taken a credit hit from new financials and the equity market free-fall.
- Total liabilities to market cap is 1.97x compared to last week’s reading of 1.83x. Similarly, the median annualized free cash flow adjusted current ratio has declined a few ticks from .68x to .65x. Debt to 2024 EBITDA has risen from 3.04x last week to 3.29x this week.
- Importantly, these changes are relatively subtle. There has not been a cratering of credit, and companies are not markedly more prone to failure this week than they were last week. The real damage is the potential impact on refinancing in 2026. Still, there are so many potential upside catalysts that we find it premature to get too worked up about today’s credit conditions.
Week ended 11/08/2024
Weekly Sector Credit – Cultivation and Retail
- The sector has clearly taken a credit hit from new financials and the equity market free-fall.
- Total liabilities to market cap is 1.97x compared to last week’s reading of 1.83x. Similarly, the median annualized free cash flow adjusted current ratio has declined a few ticks from .68x to .65x. Debt to 2024 EBITDA has risen from 3.04x last week to 3.29x this week.
- Importantly, these changes are relatively subtle. There has not been a cratering of credit, and companies are not markedly more prone to failure this week than they were last week. The real damage is the potential impact on refinancing in 2026. Still, there are so many potential upside catalysts that we find it premature to get too worked up about today’s credit conditions.
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