Does Center International GroupLtd (SHSE:603098) Have A Healthy Balance Sheet?
Does Center International GroupLtd (SHSE:603098) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' 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. Importantly, Center International Group Co.,Ltd. (SHSE:603098) does carry debt. But is this debt a concern to shareholders?
霍华德·马克斯(Howard Marks)说得很好,与其担心股价波动,‘我担心的是永久性损失的可能性……我认识的每一个实际投资者都会担心这个。’看来聪明的投资者知道,通常涉及破产的债务是评估企业风险时非常重要的因素。 重要的是,森特股份股份有限公司(SHSE:603098)确实负债。但这笔债务是否会让股东担忧呢?
When Is Debt Dangerous?
债务何时有危险?
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. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest 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.
债务是帮助企业成长的一种工具,但是如果企业无法偿还其债权人的钱,那么它就完全受制于债权人。最终,如果公司无法履行其法定债务还款义务,股东可能面临空手而回的风险。然而,更频繁的情况是,公司必须以折价的价格发行股票,永久稀释股东权益,以支撑其资产负债表。当然,债务的好处在于,它通常代表着廉价的资本,特别是当它取代具有高回报率再投资能力的公司的稀释时。在考虑企业使用多少债务时,首先要做的是看看它的现金和债务状况。
What Is Center International GroupLtd's Debt?
森特股份股份有限公司的债务情况如何?
The image below, which you can click on for greater detail, shows that Center International GroupLtd had debt of CN¥961.3m at the end of March 2024, a reduction from CN¥1.40b over a year. But on the other hand it also has CN¥1.06b in cash, leading to a CN¥99.8m net cash position.
以下图片,您可以点击获取更多细节,显示森特股份股份有限公司于2024年3月底的债务为9.6130亿元人民币,较去年同期下降了14亿元人民币。 另一方面,它也拥有10.6亿元人民币的现金,导致净现金为9980万元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240531/0-5969a7e940f76362f3cbe32cee985b97-0-6605266b637d19c0ece98fff02171027.png/big)
How Strong Is Center International GroupLtd's Balance Sheet?
森特股份股份有限公司的资产负债表如何?
Zooming in on the latest balance sheet data, we can see that Center International GroupLtd had liabilities of CN¥3.05b due within 12 months and liabilities of CN¥258.0m due beyond that. Offsetting these obligations, it had cash of CN¥1.06b as well as receivables valued at CN¥3.69b due within 12 months. So it can boast CN¥1.44b more liquid assets than total liabilities.
放大最新的资产负债表数据,我们可以看到,森特股份股份有限公司在12个月内有305亿元人民币的负债,超过该期限后另有2580万元人民币的负债。 抵消这些负债,它拥有10.6亿元人民币的现金,以及36.9亿元人民币的应收账款在12个月内到期。 因此,它可以自夸拥有14.4亿元人民币的流动资产,比其他所有负债多。总负债。
This excess liquidity suggests that Center International GroupLtd is taking a careful approach to debt. Given it has easily adequate short term liquidity, we don't think it will have any issues with its lenders. Simply put, the fact that Center International GroupLtd has more cash than debt is arguably a good indication that it can manage its debt safely.
这种过剩的流动性表明森特股份股份有限公司正在谨慎对待债务。 鉴于它具有足够的短期流动性,我们认为它不会遇到与债权人的任何问题。 简单地说,森特股份股份有限公司有更多现金而不是债务的事实,可以说是能够安全地管理其债务的良好指标。
Also relevant is that Center International GroupLtd has grown its EBIT by a very respectable 23% in the last year, thus enhancing its ability to pay down debt. 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 Center International GroupLtd can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
同样重要的是,森特股份股份有限公司在过去一年中使其EBIT增长了23%,从而增强了其偿还债务的能力。 在分析债务时,资产负债表显然是要关注的领域。 但最终,企业未来的盈利能力将决定森特股份股份有限公司能否逐渐加强其资产负债表。 因此,如果您专注于未来,可以查看这份免费报告,其中显示了分析师的利润预测。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. Center International GroupLtd 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. Over the last three years, Center International GroupLtd actually produced more free cash flow than EBIT. There's nothing better than incoming cash when it comes to staying in your lenders' good graces.
最后,企业需要自由现金流来偿还债务;会计利润并不太够。森特股份股份有限公司可能有净现金负债表,但是看看企业将其利润前利息和税前收益(EBIT)转化为自由现金流的能力,是很有趣的,因为这将影响它的债务需求和债务管理能力。在过去的三年中,森特股份股份有限公司实际上比EBIT产生了更多自由现金流。对于保持与贷款人的良好关系来说,没有什么比流入的现金更好的了。
Summing Up
总之
While it is always sensible to investigate a company's debt, in this case Center International GroupLtd has CN¥99.8m in net cash and a decent-looking balance sheet. And it impressed us with free cash flow of CN¥268m, being 156% of its EBIT. So we don't think Center International GroupLtd's use of debt is risky. 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. For example, we've discovered 1 warning sign for Center International GroupLtd that you should be aware of before investing here.
虽然调查一家公司的债务总是明智的,但在这种情况下,森特股份股份有限公司有9980万元的净现金和一份看上去不错的资产负债表。它让我们印象深刻的是,它的自由现金流为26800万元人民币,是其EBIT的156%。因此,我们认为森特股份股份有限公司的债务使用并不具有风险。 在分析债务水平时,资产负债表显然是要开始的地方。 但最终,除了资产负债表以外,每个公司都可能存在风险。例如,我们发现森特股份股份有限公司有1个警告标志,您在投资之前应该注意。
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.
如果您有兴趣投资能够在不负债的情况下增长利润的企业,请查看这份免费列表,其中列出了在资产负债表上拥有净现金的成长型企业。
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