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AVLNF (Avalon Advanced Materials) Financial Strength : 0 (As of Feb. 2025)


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What is Avalon Advanced Materials Financial Strength?

Avalon Advanced Materials has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Avalon Advanced Materials did not have earnings to cover the interest expense. Avalon Advanced Materials's debt to revenue ratio for the quarter that ended in Feb. 2025 was 121.09. As of today, Avalon Advanced Materials's Altman Z-Score is 0.04.


Competitive Comparison of Avalon Advanced Materials's Financial Strength

For the Other Industrial Metals & Mining subindustry, Avalon Advanced Materials's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Avalon Advanced Materials's Financial Strength Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Avalon Advanced Materials's Financial Strength distribution charts can be found below:

* The bar in red indicates where Avalon Advanced Materials's Financial Strength falls into.


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Avalon Advanced Materials Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Avalon Advanced Materials's Interest Expense for the months ended in Feb. 2025 was $-0.09 Mil. Its Operating Income for the months ended in Feb. 2025 was $-0.60 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2025 was $5.28 Mil.

Avalon Advanced Materials's Interest Coverage for the quarter that ended in Feb. 2025 is

Avalon Advanced Materials did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Avalon Advanced Materials's Debt to Revenue Ratio for the quarter that ended in Feb. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.502 + 5.279) / 0.056
=121.09

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Avalon Advanced Materials has a Z-score of 0.04, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.04 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Avalon Advanced Materials  (OTCPK:AVLNF) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Avalon Advanced Materials has the Financial Strength Rank of 0.


Avalon Advanced Materials Financial Strength Related Terms

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Avalon Advanced Materials Business Description

Traded in Other Exchanges
Address
130 Adelaide Street West, Suite 2060, Toronto, ON, CAN, M5H 3P5
Avalon Advanced Materials Inc is a mineral exploration and development company. It is principally engaged in the acquisition, exploration, evaluation, and development of specialty and critical minerals properties, located principally in Canada. It holds an exploration license within four claims in the East Kemptville area of Yarmouth, Nova Scotia. The company also holds an interest in a mining lease in the Warren Township Anorthosite Project, Nechalacho REE Project and Net Smelter Returns (NSR) rights in the East Cedartree Gold Property, and the Wolf Mountain Platinum-Palladium Project.