Analysts claim that Avangard has consistently grown its profits

Avangard is able to meet its upcoming commitments with its cash and other short-term assets, which lessens concerns for the company’s business operations should any unfavourable circumstances arise, Simplywall.st reports.

The company's debt-to-equity ratio is over 100%, which means that it is a highly leveraged company.

"This is not a problem if the company has consistently grown its profits. But during a business downturn, as liquidity may dry up, making it hard to operate," analysts note.

Its cash flow coverage of less than a quarter of debt means that operating efficiency could also be an issue. Though, the company will be able to pay all of its upcoming liabilities from its current short-term assets.

"High liquidity ensures the company will continue to operate smoothly should unfavourable circumstances arise. Given that its financial position may be different," Simplywall.st continues. 

Reference: Avangard in H1 2017 reduced its net loss by 2.78 times to US$ 11.7 million (H1 2016 — net loss of US$ 32.6 million).