Cannabis Chart Of The Week: Introducing The Improved Viridian Capital Credit Ranking Model
The Viridian Capital Credit Ranking Model utilizes eleven different bespoke financial and market variables to resolve four critical credit factors: Liquidity, Leverage, Profitability, and Size. These Factors are weighted to arrive at a credit score and credit rank. The use of market equity prices in several of our ratios makes our model dynamic, reacting instantly to new information driving stock prices rather than remaining fixed between earnings releases. The Viridian model provides a substitute for the credit ratings that are not yet available for cannabis companies and represents a valuable selection and monitoring tool for both debt and equity investors.
The graph shows the updated Viridian Capital Credit Rankings of the top 31 U.S. Cultivation and Retail companies. The black line shows our liquidity rank; the red indicates our leverage rank, and the green indicates our overall ranking. The blue squares depict the yield at which the respective company’s debt is offered. The numbers below the ticker symbols show the positive or negative changes in model rankings from the prior week. See this coming week’s Viridian Credit Tracker for more detail on the indicators used in the model.
What’s New?
Last week’s Chart introduced a pair of new valuation and leverage metrics that we believe …