Fangda Special Steel Technology (SHSE:600507) Seems To Use Debt Quite Sensibly
Fangda Special Steel Technology (SHSE:600507) Seems To Use Debt Quite Sensibly
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Fangda Special Steel Technology Co., Ltd. (SHSE:600507) does carry debt. But is this debt a concern to shareholders?
大卫·伊本说得很好,他说:“波动性不是我们关心的风险。我们关心的是避免资本的永久损失。”当你研究公司的资产负债表的风险时,自然会考虑它的资产负债表,因为企业倒闭时通常会涉及债务。重要的是,方大特钢科技股份有限公司(SHSE:600507)确实有债务。但是这笔债务是股东关心的问题吗?
When Is Debt Dangerous?
债务何时危险?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we think about a company's use of debt, we first look at cash and debt together.
一般而言,只有当公司无法通过筹集资金或使用自己的现金流轻松还清债务时,债务才会成为真正的问题。资本主义的重要组成部分是 “创造性破坏” 的过程,在这个过程中,银行家无情地清算倒闭的企业。但是,更常见(但成本仍然很高)的情况是,公司必须以低廉的价格发行股票,永久稀释股东,只是为了支撑其资产负债表。当然,债务可以成为企业的重要工具,尤其是资本密集型企业。当我们考虑公司使用债务时,我们首先将现金和债务放在一起看。
View our latest analysis for Fangda Special Steel Technology
查看我们对方大特钢科技的最新分析
How Much Debt Does Fangda Special Steel Technology Carry?
方大特钢科技背负了多少债务?
You can click the graphic below for the historical numbers, but it shows that Fangda Special Steel Technology had CN¥926.8m of debt in September 2023, down from CN¥2.30b, one year before. But on the other hand it also has CN¥9.16b in cash, leading to a CN¥8.24b net cash position.
你可以点击下图查看历史数字,但它显示方大特钢科技在2023年9月的债务为9.268亿元人民币,低于一年前的23.0亿元人民币。但另一方面,它也有91.6亿元人民币的现金,净现金头寸为82.4亿元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231116/0-a83246b3b72225a4c335a44a4e520755-0-311d84737f1422627e656cef8c6a7d90.png/big)
A Look At Fangda Special Steel Technology's Liabilities
看看方大特钢科技的负债
We can see from the most recent balance sheet that Fangda Special Steel Technology had liabilities of CN¥12.8b falling due within a year, and liabilities of CN¥350.4m due beyond that. On the other hand, it had cash of CN¥9.16b and CN¥2.49b worth of receivables due within a year. So it has liabilities totalling CN¥1.47b more than its cash and near-term receivables, combined.
我们可以从最新的资产负债表中看出,方大特钢科技的负债为128亿元人民币,此后到期的负债为3.504亿元人民币。另一方面,它在一年内有91.6亿元人民币的现金和价值24.9亿元人民币的应收账款。因此,它的负债总额比其现金和短期应收账款的总和高出14.7亿元人民币。
Since publicly traded Fangda Special Steel Technology shares are worth a total of CN¥11.5b, it seems unlikely that this level of liabilities would be a major threat. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time. While it does have liabilities worth noting, Fangda Special Steel Technology also has more cash than debt, so we're pretty confident it can manage its debt safely.
由于公开交易的方大特钢科技股票总价值为115亿元人民币,因此这种负债水平似乎不太可能成为重大威胁。但是,我们确实认为值得关注其资产负债表的实力,因为它可能会随着时间的推移而发生变化。尽管它确实有负债值得注意,但方达特钢科技的现金也多于债务,因此我们非常有信心它能够安全地管理债务。
In fact Fangda Special Steel Technology's saving grace is its low debt levels, because its EBIT has tanked 93% in the last twelve months. Falling earnings (if the trend continues) could eventually make even modest debt quite risky. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Fangda Special Steel Technology's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
实际上,方大特钢科技的储蓄空间是其低债务水平,因为其息税前利润在过去十二个月中下降了93%。收益下降(如果这种趋势持续下去)最终也可能使即使是适度的债务也变得相当危险。资产负债表显然是分析债务时需要关注的领域。但是,未来的收益,比什么都重要,将决定方大特钢科技未来保持健康资产负债表的能力。因此,如果你专注于未来,你可以查看这份显示分析师利润预测的免费报告。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. Fangda Special Steel Technology may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. Happily for any shareholders, Fangda Special Steel Technology actually produced more free cash flow than EBIT over the last three years. That sort of strong cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.
最后,企业需要自由现金流来偿还债务;会计利润根本无法削减债务。方达特钢科技的资产负债表上可能有净现金,但看看该企业如何将其息税前收益(EBIT)转换为自由现金流仍然很有趣,因为这将影响其对债务的需求和管理债务的能力。令所有股东感到高兴的是,方大特钢科技在过去三年中产生的自由现金流实际上超过了息税前利润。在 Daft Punk 音乐会上,这种强劲的现金转换让我们和观众一样兴奋。
Summing Up
总结
While Fangda Special Steel Technology does have more liabilities than liquid assets, it also has net cash of CN¥8.24b. And it impressed us with free cash flow of CN¥3.6b, being 139% of its EBIT. So we are not troubled with Fangda Special Steel Technology's debt use. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. To that end, you should be aware of the 2 warning signs we've spotted with Fangda Special Steel Technology .
尽管方大特钢科技的负债确实多于流动资产,但其净现金也为82.4亿元人民币。它以36亿元人民币的自由现金流给我们留下了深刻的印象,占其息税前利润的139%。因此,我们对方大特钢科技的债务使用并不感到困扰。资产负债表显然是分析债务时需要关注的领域。但是,并非所有的投资风险都存在于资产负债表中——远非如此。为此,您应该注意我们在方大特钢科技上发现的两个警告信号。
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
归根结底,通常最好将注意力集中在没有净负债的公司身上。您可以访问我们的此类公司的特别名单(所有公司都有利润增长记录)。它是免费的。
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