Additional Considerations Required While Assessing Xiangyang Changyuandonggu Industry's (SHSE:603950) Strong Earnings
Additional Considerations Required While Assessing Xiangyang Changyuandonggu Industry's (SHSE:603950) Strong Earnings
Investors were disappointed with Xiangyang Changyuandonggu Industry Co., Ltd.'s (SHSE:603950) earnings, despite the strong profit numbers. Our analysis uncovered some concerning factors that we believe the market might be paying attention to.
投资者对襄阳长源东谷实业有限公司感到失望。”s(上海证券交易所股票代码:603950)的收益,尽管利润数字强劲。我们的分析发现了一些我们认为市场可能会关注的令人担忧的因素。
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240405/0-e3caaa733ebfa05c8e0d719085fc84b9-0-6f6678cd9e08396520429e09e5377010.png/big)
Zooming In On Xiangyang Changyuandonggu Industry's Earnings
放大襄阳长源东谷工业的收益
As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF.
正如财务爱好者已经知道的那样,现金流的应计比率是评估公司自由现金流(FCF)与其利润相匹配程度的关键指标。应计比率从给定时期的利润中减去FCF,然后将结果除以公司在该时期内的平均运营资产。该比率向我们显示了公司的利润超过其FCF的程度。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
这意味着负应计比率是一件好事,因为它表明该公司带来的自由现金流超出了其利润所暗示的范围。尽管应计比率高于零并不令人担忧,但我们确实认为,当公司的应计比率相对较高时,值得注意。值得注意的是,有一些学术证据表明,总的来说,高应计比率对短期利润来说是个坏兆头。
For the year to December 2023, Xiangyang Changyuandonggu Industry had an accrual ratio of 0.25. We can therefore deduce that its free cash flow fell well short of covering its statutory profit. Even though it reported a profit of CN¥218.6m, a look at free cash flow indicates it actually burnt through CN¥400m in the last year. It's worth noting that Xiangyang Changyuandonggu Industry generated positive FCF of CN¥32m a year ago, so at least they've done it in the past. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio.
在截至2023年12月的一年中,襄阳长源东谷工业的应计比率为0.25。因此,我们可以推断出其自由现金流远不足以支付其法定利润。尽管该公司报告的利润为2.186亿元人民币,但从自由现金流来看,它实际上在去年消耗了4亿元人民币。值得注意的是,襄阳长源东谷工业一年前创造了3200万元人民币的正FCF,因此至少他们过去曾这样做过。但是,这还不是要考虑的全部。我们可以看到,不寻常的项目影响了其法定利润,从而影响了应计比率。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Xiangyang Changyuandonggu Industry.
注意:我们始终建议投资者检查资产负债表的实力。点击此处查看我们对襄阳长源东谷工业的资产负债表分析。
The Impact Of Unusual Items On Profit
不寻常物品对利润的影响
The fact that the company had unusual items boosting profit by CN¥25m, in the last year, probably goes some way to explain why its accrual ratio was so weak. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. And, after all, that's exactly what the accounting terminology implies. If Xiangyang Changyuandonggu Industry doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current year.
该公司去年有不寻常的项目将利润提高了2500万元人民币,这一事实可能在某种程度上可以解释其应计比率为何如此疲软。虽然获得更高的利润总是件好事,但来自不寻常物品的巨额捐款有时会抑制我们的热情。当我们计算数千家上市公司的数字时,我们发现,特定年份中不寻常的项目所带来的提振通常不会在第二年重演。而且,毕竟,这正是会计术语的含义。如果襄阳长源东谷实业没有看到这种贡献重演,那么在其他条件相同的情况下,我们预计其本年度的利润将下降。
Our Take On Xiangyang Changyuandonggu Industry's Profit Performance
我们对襄阳长源东谷工业盈利表现的看法
Xiangyang Changyuandonggu Industry had a weak accrual ratio, but its profit did receive a boost from unusual items. For the reasons mentioned above, we think that a perfunctory glance at Xiangyang Changyuandonggu Industry's statutory profits might make it look better than it really is on an underlying level. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we've spotted 3 warning signs for Xiangyang Changyuandonggu Industry (of which 2 are a bit unpleasant!) you should know about.
襄阳长源东谷工业的应计比率较低,但其利润确实得到了不寻常项目的提振。出于上述原因,我们认为,敷衍地看一眼襄阳长源东谷实业的法定利润可能会使其看起来比实际水平要好。考虑到这一点,除非我们对风险有透彻的了解,否则我们不会考虑投资股票。每家公司都有风险,我们已经发现了襄阳长源东谷工业的3个警告标志(其中2个有点不愉快!)你应该知道。
In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.
在本文中,我们研究了许多可能削弱利润数字效用的因素,我们对此持谨慎态度。但是,如果你能够将注意力集中在细节上,总会有更多值得发现的地方。例如,许多人认为高股本回报率表明商业经济状况良好,而另一些人则喜欢 “追随资金”,寻找内部人士正在购买的股票。因此,你可能希望看到这批拥有高股本回报率的免费公司,或者这份内部人士正在购买的股票清单。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
对这篇文章有反馈吗?对内容感到担忧?直接联系我们。 或者,给编辑团队 (at) simplywallst.com 发送电子邮件。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。