Cannabis Chart Of The Week: Which Leverage Metric Should Investors Keep A Close Eye On?
Portfolio Pulse from Viridian Capital Advisors
The cannabis credit markets are seeing major refinancings with companies like Ascend, TerrAscend, and Jushi. The article emphasizes the importance of monitoring the Total Liabilities to Market Cap ratio as an early warning sign of credit difficulties. This metric is more responsive to market changes than Debt/EBITDA and is crucial for assessing financial flexibility and default risk.
August 19, 2024 | 5:44 pm
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Ascending
NEGATIVE IMPACT
Cannabist faces high yield requirements in the cannabis credit market, indicating perceived credit risk. Monitoring its financial metrics is vital.
Cannabist's high yield requirement indicates perceived credit risk, making it crucial for investors to monitor its financial metrics, especially Total Liabilities to Market Cap.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Ascend is involved in major refinancing activities in the cannabis credit market. Monitoring its Total Liabilities to Market Cap ratio is crucial for assessing its financial health.
Ascend is directly involved in the refinancing activities mentioned, making its financial metrics, especially Total Liabilities to Market Cap, important for investors to monitor.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
Jushi is undergoing refinancing in the cannabis credit market. Investors should focus on its Total Liabilities to Market Cap ratio for credit risk assessment.
Jushi's participation in refinancing activities makes its Total Liabilities to Market Cap ratio a critical metric for assessing its financial health and credit risk.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
TerrAscend is part of the cannabis credit market refinancings. Its Total Liabilities to Market Cap ratio is a key metric for evaluating its financial stability.
TerrAscend's involvement in refinancing activities highlights the need to monitor its financial metrics, particularly Total Liabilities to Market Cap, for potential credit issues.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Green Thumb has a lower yield requirement in the cannabis credit market, indicating better perceived credit quality. Its financial metrics are crucial for investors.
Green Thumb's lower yield requirement suggests strong credit quality, making its financial metrics, including Total Liabilities to Market Cap, important for investors.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 60