American Vanguard Corporation — financial distress indicators
Financial-health summary
American Vanguard Corporation's reported numbers place it in the 'Watch' financial-health band (distress score 37/100). The main indicators are operations consume cash, cash runway under 24 months and losses in 2 of the last 3 years.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Operating cash flow negative in 2 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Cash covers ~13 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Price is -71% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- No material mitigating factors found in the available data.
📰 Recent news scan
- AVD Feb 2027 5.000 call (AVD270219C00005000) stock price, news, quote and history - Yahoo Finance AustraliaGoogle News · 2026-10-07
- American Vanguard appoints new chief financial officer - The Globe and MailGoogle News · 2026-10-02
- American Vanguard Corporation (AVD) Announces CFO Transition - Stock TitanGoogle News · 2026-10-01
- American Vanguard Insider Confidence Rewarded, Stock Hits US$83m Market Cap - Simply Wall StreetGoogle News · 2026-07-03
- American Vanguard Corporation (AVD) Stock Rises on Q1 2026 Earnings | AVD Stock News - Quiver QuantitativeGoogle News · 2026-05-06
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do American Vanguard Corporation's financial-health indicators show?
As of 2026-10-08, American Vanguard Corporation's public financial data places it in the 'Watch' band with a distress score of 37/100, driven by operations consume cash, cash runway under 24 months and losses in 2 of the last 3 years. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is American Vanguard Corporation's financial distress score?
37/100 ('Watch').
What works in American Vanguard Corporation's favour?
No material mitigating factors were found in the available data.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.