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 02/28/2025
Weekly Sector Credit – Cultivation & Retail
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- We are in the middle of the 2024 4th quarter earnings releases, and four of the largest MSOs, GTI, Trulieve, Curaleaf, and Verano, have reported.
- The sector as a whole continues to have relatively weak liquidity. The free cash flow adjusted current ratio median of .93x indicates that more than ½ of the 76 companies in the sector are likely to need additional funding to dispatch their current liabilities.
- We are encouraged, though, by the 2025 median EBITDAR/Net Adj Debt value of .31x. This ratio includes all lease liabilities and uncertain tax liabilities as debt and shows that 50% of the sector companies have leverage of under 3.2x.
- More concerning is the -.03x Funds from Operation / total assets median. This number takes net income plus noncash chargebacks like depreciation relative to assets. Importantly, this ratio is before the add-back for the increase in uncertain tax liabilities by the U.S. MSOs and shows that on an after-tax basis, more than ½ of the sector is still negative cash flow even before funding any increases in working capital.
- We are in the middle of the 2024 4th quarter earnings releases, and four of the largest MSOs, GTI, Trulieve, Curaleaf, and Verano, have reported.
Week ended 02/28/2025
Weekly Sector Credit – Cultivation & Retail
-
- We are in the middle of the 2024 4th quarter earnings releases, and four of the largest MSOs, GTI, Trulieve, Curaleaf, and Verano, have reported.
- The sector as a whole continues to have relatively weak liquidity. The free cash flow adjusted current ratio median of .93x indicates that more than ½ of the 76 companies in the sector are likely to need additional funding to dispatch their current liabilities.
- We are encouraged, though, by the 2025 median EBITDAR/Net Adj Debt value of .31x. This ratio includes all lease liabilities and uncertain tax liabilities as debt and shows that 50% of the sector companies have leverage of under 3.2x.
- More concerning is the -.03x Funds from Operation / total assets median. This number takes net income plus noncash chargebacks like depreciation relative to assets. Importantly, this ratio is before the add-back for the increase in uncertain tax liabilities by the U.S. MSOs and shows that on an after-tax basis, more than ½ of the sector is still negative cash flow even before funding any increases in working capital.
- We are in the middle of the 2024 4th quarter earnings releases, and four of the largest MSOs, GTI, Trulieve, Curaleaf, and Verano, have reported.
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