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 06/07/2024
Weekly Sector Credit
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- We are surprised that credit metrics in the hemp sector have held up quite well despite adverse legislation hitting the news practically every day. The explanation is that most of the companies selling D8, D10, and THCA are not public companies, so we do not really see value and credit deterioration on the private side of the sector.
- The median total liabilities to market cap has edged up from 1.35x last month to 1.47x currently, but that is pretty minor.
- Liquidity also worsened, but only slightly. Viridian’s Free Cash Flow Adjusted Current Ratio median dropped from .55x to .51x. Both measures indicate a need for additional financing over the balance of the year. However, we are surprised that the most recent quarterly results did not show worse liquidity numbers than they did.
- We are surprised that credit metrics in the hemp sector have held up quite well despite adverse legislation hitting the news practically every day. The explanation is that most of the companies selling D8, D10, and THCA are not public companies, so we do not really see value and credit deterioration on the private side of the sector.
Week ended 06/07/2024
Weekly Sector Credit
-
- We are surprised that credit metrics in the hemp sector have held up quite well despite adverse legislation hitting the news practically every day. The explanation is that most of the companies selling D8, D10, and THCA are not public companies, so we do not really see value and credit deterioration on the private side of the sector.
- The median total liabilities to market cap has edged up from 1.35x last month to 1.47x currently, but that is pretty minor.
- Liquidity also worsened, but only slightly. Viridian’s Free Cash Flow Adjusted Current Ratio median dropped from .55x to .51x. Both measures indicate a need for additional financing over the balance of the year. However, we are surprised that the most recent quarterly results did not show worse liquidity numbers than they did.
- We are surprised that credit metrics in the hemp sector have held up quite well despite adverse legislation hitting the news practically every day. The explanation is that most of the companies selling D8, D10, and THCA are not public companies, so we do not really see value and credit deterioration on the private side of the sector.
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