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 05/10/2024
- The Biotech/Pharma sector has seen an improvement in credit metrics over the last month, reflecting q1 financials and improvements in stock market valuations.
- Liquidity is still quite tight, and in fact, the median current ratio for the 41 companies in the group has actually declined from 1.27x to .97x. More importantly, though, the free cash flow adjusted current ratio has improved from -.03x to +.04x. This still indicates significant needs for additional funding. Still, it does suggest that cash burn rates have come down.
- The sector uses little debt, but leverage has improved moderately as measured by total liabilities to market cap, with a decline from .40x to .28x over the last month.
- The graph below shows that the sector has the lowest market leverage of the comparable sectors but only the 5th lowest liquidity rating.
Week ended 05/10/2024
- The Biotech/Pharma sector has seen an improvement in credit metrics over the last month, reflecting q1 financials and improvements in stock market valuations.
- Liquidity is still quite tight, and in fact, the median current ratio for the 41 companies in the group has actually declined from 1.27x to .97x. More importantly, though, the free cash flow adjusted current ratio has improved from -.03x to +.04x. This still indicates significant needs for additional funding. Still, it does suggest that cash burn rates have come down.
- The sector uses little debt, but leverage has improved moderately as measured by total liabilities to market cap, with a decline from .40x to .28x over the last month.
- The graph below shows that the sector has the lowest market leverage of the comparable sectors but only the 5th lowest liquidity rating.
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