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 08/25/2023
The jump in stock prices has also increased the perceived credit quality of the Cultivation & Retail sector. Median total liabilities to market cap is 2.51x this week, down 14% from 2.93x last week. This ratio directly measures the market’s view of the cushion of asset values over liabilities. Despite this perceived greater asset coverage, analysts have not yet factored re-scheduling into their forecasts. Accordingly, the sector’s debt/ 2024 market cap remains high at 3.02x, unchanged from last week. In next week’s report, we will update our views on what potential changes in 280e from rescheduling can mean for sustainable debt levels in the industry.
Week ended 08/25/2023
The jump in stock prices has also increased the perceived credit quality of the Cultivation & Retail sector. Median total liabilities to market cap is 2.51x this week, down 14% from 2.93x last week. This ratio directly measures the market’s view of the cushion of asset values over liabilities. Despite this perceived greater asset coverage, analysts have not yet factored re-scheduling into their forecasts. Accordingly, the sector’s debt/ 2024 market cap remains high at 3.02x, unchanged from last week. In next week’s report, we will update our views on what potential changes in 280e from rescheduling can mean for sustainable debt levels in the industry.
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