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 08/16/2024
Weekly Sector Credit
- The Infused Product & Extracts sector is composed of 18 companies engaged in the extraction and sales of products using extracts, including vapes, oils, and beverages.
- The group’s liquidity is critically low, with a median free cash flow adjusted current ratio of .05x, indicating an acute need for additional financing or asset sales in order to meet current liabilities.
- The sector generally employs modest leverage, as shown by its total liabilities to market cap median of .5x, debt/2024 EBITDA median of .67x, and debt/market cap of .12x.
- Debt/ 2024 EBITDA, a more commonly used but less predictive measure of credit quality than the market-based measures, now has a median value of 2.68x, a slight deterioration from 2.6x last week.
- Most of the companies in the sector are quite small. The median total assets is $3.63M, with a third quartile measure of $11M.
- The sector generally has negative cash flow. Only 3 of the eighteen companies have positive Funds from Operation.
Week ended 08/16/2024
Weekly Sector Credit
- The Infused Product & Extracts sector is composed of 18 companies engaged in the extraction and sales of products using extracts, including vapes, oils, and beverages.
- The group’s liquidity is critically low, with a median free cash flow adjusted current ratio of .05x, indicating an acute need for additional financing or asset sales in order to meet current liabilities.
- The sector generally employs modest leverage, as shown by its total liabilities to market cap median of .5x, debt/2024 EBITDA median of .67x, and debt/market cap of .12x.
- Debt/ 2024 EBITDA, a more commonly used but less predictive measure of credit quality than the market-based measures, now has a median value of 2.68x, a slight deterioration from 2.6x last week.
- Most of the companies in the sector are quite small. The median total assets is $3.63M, with a third quartile measure of $11M.
- The sector generally has negative cash flow. Only 3 of the eighteen companies have positive Funds from Operation.
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