Source: Business Insider
Summary List Placement Cannabis companies that survived a tumultuous 2019 and 2020 are seeing their fortunes improve. But some cannabis companies still find themselves in a precarious position, despite the influx of new investors and favorable legislation. Insider analyzed the risk of bankruptcy for 13 of the largest US and Canadian plant-touching cannabis companies . We evaluated the risk using information from the financial risk analysis firm CreditRiskMonitor. CreditRiskMonitor grades companies on a 10-point scale called the FRISK Score. A score of 10 indicates the lowest risk of bankruptcy within the next year, while a score of 1 indicates the highest risk. Five companies received a score of 5 or below — the ” red zone “, according to CreditRiskMonitor. A score of 5 or below indicates a bankruptcy risk of at least 0.87% in the next 12 months. !function(){“use strict”;window.addEventListener(“message”,(function(a){if(void 0!==a.data[“datawrapper-height”])for(var e in a.data[“datawrapper-height”]){var t=document.getElementById(“datawrapper-chart-“+e)||document.querySelector(“iframe[src*='”+e+”‘]”);t&&(t.style.height=a.data[“datawrapper-height”][e]+”px”)}}))}(); The score is calculated based on four components: stock market performance, financial statements, bond agency ratings, and subscriber crowdsourcing, which tracks how CreditRiskMonitor’s over 1,700 clients view and interact with data from each company, Brian Sanders, a senior research analyst at CreditRiskMonitor said.
