PAVA Reports Reduction of Financial Leverage
OREANDA-NEWS On 11 December was announced, that according to the quarterly reports, published by OJSC PAVA, in Q3 2008 the company’s financial leverage decreased by 15.8% on the same period in 2007. Lately, in connection with the active expansion of business, the company continued to attract credit loans, however the price situation on the market allowed to considerably increase the retained earnings which led to favourable dynamics of the named indicator.
Maintaining favourable ratio between the debt capital and own resources is among the long-term goals of the company’s financial policy. It provides balance of the cash flows – the company is not overleveraged and can settle its obligations according to the schedule. Overall, the ratio corresponds to the particular needs of the company’s business and the industry in general.
The current tendency in PAVA’s leverage dynamics means increased profitability of the business and an opportunity to be more flexible in terms of pricing. This is especially important in view of the world economic situation, and minimizes risks for the company in the active phase of implementing new projects.
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