EBITDA & Leverage – Higher Than You Think

by | Sep 23, 2022 | Comp Table & Market Commentary, Company Analysis, Data & Analysis, Macro, Thematic Research, Weekly Extract

As valuations and liquidity have declined since the first quarter 2021 (when the industry raised over $3 billion in equity), debt has become a go-to source of financing.

What is the leverage in cannabis? It may be higher than you think.

There are also debates on if EBITDA is useful metric. It is, but again, not in the way most people think.

The Comp Table for Premium Members now includes metrics to assess the ability to service debt:

  • Gross Debt / EBITDA ratios
  • Taxes Payable

And a better metric for measuring leverage at Plant Touching US Cannabis companies…