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 07/18/2025
Weekly Sector Credit – Cultivation and Retail
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- The record price gains achieved over the last two weeks have dampened, and we wanted to take stock before the next round of volatility hits.
- We have shifted the focus of our Debt/EBITDA credit ratios to projected 2026 results rather than 2025. Median Debt to 2026 EBITDA is 2.05x as of 7/18/25, roughly unchanged from last week. This figure continues to show that over ½ of the companies have sustainable leverage even in a continuing 280E environment.
- The median total liabilities to market cap ratio is coincidentally also 2.05x. However, the upper quartile of 7.40x indicates that more than a quarter of the 74 companies have less than 1x asset coverage of liabilities, a potential sign of further credit issues to come.
- Liquidity continues to be borderline for the sector. The median free cash flow-adjusted current ratio of 0.96x indicates that a little less than half of the companies can sustain themselves through the next year without resorting to asset sales or additional financing.
- See the Viridian Credit Sector Report for more details.
Week ended 07/18/2025
Weekly Sector Credit – Cultivation and Retail
-
- The record price gains achieved over the last two weeks have dampened, and we wanted to take stock before the next round of volatility hits.
- We have shifted the focus of our Debt/EBITDA credit ratios to projected 2026 results rather than 2025. Median Debt to 2026 EBITDA is 2.05x as of 7/18/25, roughly unchanged from last week. This figure continues to show that over ½ of the companies have sustainable leverage even in a continuing 280E environment.
- The median total liabilities to market cap ratio is coincidentally also 2.05x. However, the upper quartile of 7.40x indicates that more than a quarter of the 74 companies have less than 1x asset coverage of liabilities, a potential sign of further credit issues to come.
- Liquidity continues to be borderline for the sector. The median free cash flow-adjusted current ratio of 0.96x indicates that a little less than half of the companies can sustain themselves through the next year without resorting to asset sales or additional financing.
- See the Viridian Credit Sector Report for more details.
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