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 07/21/2023
Liquidity remains a primary credit concern in several sectors, particularly Biotech Pharma. The median free cash flow adjusted current ratio for the 47 companies in the Viridian Credit Tracker database is now .00x, indicating that more than ½ of the group is suffering from severe liquidity stress and an imminent need for additional funding. Only the top quartile, at 1.3x, is in reasonable shape liquidity-wise and won’t require additional funding within the year. This liquidity challenge is primarily driven by negative free cash flow in most companies. This is demonstrated by the difference between the 1.6x current ratio and the .00x free cash flow adjusted current ratio medians.
Week ended 07/21/2023
Liquidity remains a primary credit concern in several sectors, particularly Biotech Pharma. The median free cash flow adjusted current ratio for the 47 companies in the Viridian Credit Tracker database is now .00x, indicating that more than ½ of the group is suffering from severe liquidity stress and an imminent need for additional funding. Only the top quartile, at 1.3x, is in reasonable shape liquidity-wise and won’t require additional funding within the year. This liquidity challenge is primarily driven by negative free cash flow in most companies. This is demonstrated by the difference between the 1.6x current ratio and the .00x free cash flow adjusted current ratio medians.
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