OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Quick
Links
More Charts
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 05/09/2025
Weekly Sector Credit – Cultivation & Retail Sector after Q2 earnings releases
-
- This week’s credit sector report is a first look at sector credit stats after the first quarter earnings releases.
- Leverage for many companies remains unsustainable in a 280E environment. Median Debt/ 2025 EBITDA is 3.68x, up from 3.54x last week. This leverage ratio is well beyond the maximum sustainable ratio of around 2.3x we calculate for a 280E environment and right at the tolerable limit in a post-280E environment. Over half of the sector participants need to do balance sheet repair.
- The good news is that through trimming expenses and reducing capex, the median free cash flow adjusted current ratio is now 1.04x, up from 1.02x last week, indicating that at least half of the 79 companies in the sector are able to cover their short-term liabilities without needing additional funding.
- Our favorite leverage indicator, total liabilities to market cap, took a hit this week, rising to a 2.39x median compared to only 1.81x last week. While this shows diminished asset value coverage, it is still well below the critical level of 5x, where we begin to see less than 1x asset value coverage of liabilities.
Week ended 05/09/2025
Weekly Sector Credit – Cultivation & Retail Sector after Q2 earnings releases
-
- This week’s credit sector report is a first look at sector credit stats after the first quarter earnings releases.
- Leverage for many companies remains unsustainable in a 280E environment. Median Debt/ 2025 EBITDA is 3.68x, up from 3.54x last week. This leverage ratio is well beyond the maximum sustainable ratio of around 2.3x we calculate for a 280E environment and right at the tolerable limit in a post-280E environment. Over half of the sector participants need to do balance sheet repair.
- The good news is that through trimming expenses and reducing capex, the median free cash flow adjusted current ratio is now 1.04x, up from 1.02x last week, indicating that at least half of the 79 companies in the sector are able to cover their short-term liabilities without needing additional funding.
- Our favorite leverage indicator, total liabilities to market cap, took a hit this week, rising to a 2.39x median compared to only 1.81x last week. While this shows diminished asset value coverage, it is still well below the critical level of 5x, where we begin to see less than 1x asset value coverage of liabilities.
This Chart is Only Available to Higher Tier Memberships
Please Purchase a Premium or Enterprise membership to see more.
