Is Giant Network Group (SZSE:002558) A Risky Investment?
Is Giant Network Group (SZSE:002558) A Risky Investment?
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.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. As with many other companies Giant Network Group Co., Ltd. (SZSE:002558) makes use of debt. But the more important question is: how much risk is that debt creating?
大卫·伊本说得好,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。”因此,当你评估公司的风险时,看来聪明的货币知道债务(通常涉及破产)是一个非常重要的因素。与许多其他公司一样,巨人网络集团有限公司(深圳证券交易所:002558)也使用债务。但更重要的问题是:这笔债务会带来多大的风险?
What Risk Does Debt Bring?
债务会带来什么风险?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. If things get really bad, the lenders can take control of the business. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
当企业无法通过自由现金流或以诱人的价格筹集资金来轻松履行这些义务时,债务和其他负债就会成为风险。如果情况变得非常糟糕,贷款人可以控制业务。但是,更常见(但仍然令人痛苦)的情况是,它必须以低廉的价格筹集新的股本,从而永久稀释股东。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。考虑公司的债务水平的第一步是同时考虑其现金和债务。
What Is Giant Network Group's Net Debt?
巨人网络集团的净负债是多少?
As you can see below, at the end of September 2023, Giant Network Group had CN¥630.0m of debt, up from CN¥603.0m a year ago. Click the image for more detail. But on the other hand it also has CN¥2.19b in cash, leading to a CN¥1.56b net cash position.
如下所示,截至2023年9月底,巨人网络集团的债务为6.30亿元人民币,高于去年同期的6.030亿元人民币。点击图片查看更多细节。但另一方面,它也有21.9亿元人民币的现金,净现金状况为15.6亿元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240320/0-ecdac1ed3c24aec80950a56bc61c8f81-0-ce45bc3af5afb2d207dd16c939ffa54e.png/big)
A Look At Giant Network Group's Liabilities
看看巨人网络集团的负债
We can see from the most recent balance sheet that Giant Network Group had liabilities of CN¥1.46b falling due within a year, and liabilities of CN¥74.3m due beyond that. On the other hand, it had cash of CN¥2.19b and CN¥201.5m worth of receivables due within a year. So it actually has CN¥855.0m more liquid assets than total liabilities.
我们可以从最新的资产负债表中看出,巨人网络集团的负债为14.6亿元人民币,一年后到期的负债为7,430万元人民币。另一方面,它有一年内到期的现金为21.9亿元人民币,还有价值2.01亿元人民币的应收账款。所以它实际上有8.55亿元人民币 更多 流动资产超过总负债。
This short term liquidity is a sign that Giant Network Group could probably pay off its debt with ease, as its balance sheet is far from stretched. Simply put, the fact that Giant Network Group has more cash than debt is arguably a good indication that it can manage its debt safely.
这种短期流动性表明,巨人网络集团可能会轻松偿还债务,因为其资产负债表远未紧张。简而言之,巨人网络集团的现金多于债务这一事实可以说是一个很好的迹象,表明它可以安全地管理债务。
But the other side of the story is that Giant Network Group saw its EBIT decline by 5.3% over the last year. If earnings continue to decline at that rate the company may have increasing difficulty managing its debt load. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Giant Network Group'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.
但故事的另一面是,巨人网络集团的息税前利润比去年下降了5.3%。如果收益继续以这种速度下降,公司管理债务负担的难度可能会越来越大。在分析债务水平时,资产负债表是显而易见的起点。但是,未来的收益比什么都重要,将决定巨人网络集团未来维持健康资产负债表的能力。因此,如果您专注于未来,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. Giant Network Group 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, Giant Network Group 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;会计利润根本无法减少债务。Giant Network Group的资产负债表上可能有净现金,但看看该企业如何将其利息税前收益(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能力。令所有股东感到高兴的是,在过去三年中,巨人网络集团产生的自由现金流实际上超过了息税前利润。当Daft Punk音乐会的节拍下降时,这种强劲的现金转换让我们和观众一样兴奋。
Summing Up
总结
While we empathize with investors who find debt concerning, you should keep in mind that Giant Network Group has net cash of CN¥1.56b, as well as more liquid assets than liabilities. And it impressed us with free cash flow of CN¥883m, being 118% of its EBIT. So is Giant Network Group's debt a risk? It doesn't seem so to us. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. Case in point: We've spotted 1 warning sign for Giant Network Group you should be aware of.
虽然我们同情那些认为债务令人担忧的投资者,但您应该记住,巨人网络集团的净现金为15.6亿元人民币,流动资产比负债还多。它以8.83亿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118%。那么巨人网络集团的债务有风险吗?在我们看来,情况并非如此。在分析债务水平时,资产负债表是显而易见的起点。但归根结底,每家公司都可以控制资产负债表之外存在的风险。一个很好的例子:我们发现了巨人网络集团的1个警告信号,你应该注意。
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
如果你有兴趣投资能够在没有债务负担的情况下增加利润的企业,请查看这份资产负债表上有净现金的成长型企业的免费清单。
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