Par Pacific Holdings (NYSE:PARR) Has A Somewhat Strained Balance Sheet
Par Pacific Holdings (NYSE:PARR) Has A Somewhat Strained Balance Sheet
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.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Par Pacific Holdings, Inc. (NYSE:PARR) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
David Iben说得好,“波动性并不是我们关心的风险。我们关心的是避免永久性资本损失。” 在考虑一家公司的风险程度时,我们总是喜欢看它的债务使用情况,因为债务过载会导致破产。 我们注意到Par Pacific Holdings, Inc.(NYSE: PARR)确实有债务负担。 但是股东应该担心其债务使用吗?
When Is Debt A Problem?
什么时候负债才是一个问题?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. If things get really bad, the lenders can take control of the business. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
债务是帮助企业增长的工具,但如果企业无法偿还债权人,则存在于他们的支配下。 如果情况变得非常糟糕,债权人可以掌控企业。 虽然这种情况并不常见,但我们经常看到负债累累的公司因债权人强制要求他们以降价的价格筹集资本而永久性稀释股东的现象。 然而,通过减轻稀释,债务可以成为需要以高回报率投资增长的企业的极好工具。 在考虑企业使用多少债务时,首先要做的是查看它的现金和债务。
What Is Par Pacific Holdings's Net Debt?
Par Pacific Holdings的净债务是多少?
The image below, which you can click on for greater detail, shows that at March 2024 Par Pacific Holdings had debt of US$639.5m, up from US$534.3m in one year. However, it does have US$228.3m in cash offsetting this, leading to net debt of about US$411.2m.
下图(您可以单击放大),显示了2024年3月Par Pacific Holdings的债务为6.395亿美元,比去年的5.343亿美元增加了1.052亿美元。 然而,它确实有2.283亿美元的现金进行抵消,导致净债务约为4.112亿美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240525/0-d33541b5604096d5c86a99c4f7ddac26-0-b5ebd5b52aa4022c648e77a1bbe98cbd.png/big)
How Healthy Is Par Pacific Holdings' Balance Sheet?
Par Pacific Holdings的资产负债表健康状况如何?
Zooming in on the latest balance sheet data, we can see that Par Pacific Holdings had liabilities of US$1.45b due within 12 months and liabilities of US$1.01b due beyond that. Offsetting these obligations, it had cash of US$228.3m as well as receivables valued at US$448.5m due within 12 months. So it has liabilities totalling US$1.78b more than its cash and near-term receivables, combined.
放大最新的资产负债表数据后,我们可以看到Par Pacific Holdings的负债款项为12个月内到期的1.45亿美元和超过期限的10.1亿美元。 抵消这些责任,它有2.283亿美元的现金以及价值448.5亿美元的应收款项在12个月内到期。 因此,它的负债总额比其现金和短期应收款项相加还要高出1.78亿美元。
Given this deficit is actually higher than the company's market capitalization of US$1.60b, we think shareholders really should watch Par Pacific Holdings's debt levels, like a parent watching their child ride a bike for the first time. Hypothetically, extremely heavy dilution would be required if the company were forced to pay down its liabilities by raising capital at the current share price.
鉴于这个赤字实际上比公司的市值16亿美元还要高,我们认为股东们确实应该像父母看着他们的孩子第一次骑自行车那样密切关注Par Pacific Holdings的债务水平。 假设公司被迫以当前的股价筹集资本来偿还其负债,那么极度的稀释是必须的。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
为了考察公司债务与盈利的相对关系,我们计算其净债务与利息、税、折旧和摊销前利润(EBITDA)的比值以及其利息支出(利息保障倍数)与利润之前的利润(EBIT)的比值。这种方法的优点是,我们考虑了与债务相关的绝对量(净债务与EBITDA)和实际利息开支(利息保障倍数)的实际利润。
With net debt sitting at just 0.75 times EBITDA, Par Pacific Holdings is arguably pretty conservatively geared. And this view is supported by the solid interest coverage, with EBIT coming in at 7.3 times the interest expense over the last year. It is just as well that Par Pacific Holdings's load is not too heavy, because its EBIT was down 49% over the last year. 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 ultimately the future profitability of the business will decide if Par Pacific Holdings can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
由于净债务仅为EBITDA的0.75倍,因此Par Pacific Holdings的财务杠杆被认为相对保守。 并且通过过去一年的利息覆盖率表现良好,EBIT为利息支出的7.3倍。幸好Par Pacific Holdings的负担不太重,因为它的EBIT在过去一年中下降了49%。盈利下降(如果趋势持续下去)可能会使即使是适度的负债变得相当危险。 当您分析债务时,明显是要重点关注资产负债表的。但是,最终业务的未来盈利能力将决定Par Pacific Holdings能否随着时间的推移加强其资产负债表。因此,如果您想了解专业人士的想法,您可能会发现我们有关分析师盈利预测的免费报告很有趣。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last two years, Par Pacific Holdings produced sturdy free cash flow equating to 74% of its EBIT, about what we'd expect. This free cash flow puts the company in a good position to pay down debt, when appropriate.
最后,公司只能用冷硬现金而非会计利润偿还债务。因此,我们必须清楚地看出EBIT是否导致对应的自由现金流。在过去两年中,Par Pacific Holdings提供了稳健的自由现金流,相当于其EBIT的74%,和我们预期的差不多。当需要时,这种自由现金流可以使公司处于良好的还债地位。
Our View
我们的观点
Par Pacific Holdings's struggle to grow its EBIT had us second guessing its balance sheet strength, but the other data-points we considered were relatively redeeming. For example its conversion of EBIT to free cash flow was refreshing. Taking the abovementioned factors together we do think Par Pacific Holdings's debt poses some risks to the business. So while that leverage does boost returns on equity, we wouldn't really want to see it increase from here. 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. Be aware that Par Pacific Holdings is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...
尽管Par Pacific Holdings的表现令人质疑其资产负债表的强度,但我们考虑的其他数据点相对对它友好。例如,它将EBIT转换为自由现金流的能力让人看到未来。综合考虑这些因素,我们认为Par Pacific Holdings的债务对业务存在一定风险。因此,尽管这种杠杆增加了股本回报,但我们不希望看到它从这里开始增加。明显的是,分析债务时一定要关注资产负债表。但是,并不是所有的投资风险都存在于资产负债表中 - 离它遥远得多。请注意,Par Pacific Holdings在我们的投资分析中显示了3个警告信号,其中1个有点令人担忧...
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.
总的来说,专注于没有净债务的公司往往更好。您可以访问我们的特别列表,其中包含这些公司(所有这些公司都有盈利增长的记录)。这是免费的。
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