These 4 Measures Indicate That Huaneng Lancang River Hydropower (SHSE:600025) Is Using Debt Extensively
These 4 Measures Indicate That Huaneng Lancang River Hydropower (SHSE:600025) Is Using Debt Extensively
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' 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 Huaneng Lancang River Hydropower Inc. (SHSE:600025) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?
作为投资者,有人认为波动性而非债务是最好的风险思考方式,但沃伦·巴菲特曾经说过“波动性远非风险的同义词”。 当我们考虑一家公司的风险时,我们总是喜欢看看它的债务使用情况,因为债务超载可能会导致破产。 我们注意到华能澜沧江水电股份有限公司(SHSE:600025)确实在其资产负债表上有债务。 但更重要的问题是:这笔债务创建了多少风险?
When Is Debt A Problem?
什么时候负债才是一个问题?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we think about a company's use of debt, we first look at cash and debt together.
债务可以帮助企业进展,直到企业无法用新资本或自由现金流偿还债务为止。 如果情况变得非常糟糕,债权人可以接管企业。 然而,更常见的(但仍然很昂贵)情况是企业以便宜的股价稀释股东,以控制债务。 话虽如此,最常见的情况是企业合理管理其债务,并使其受益。 当我们考虑公司的债务使用时,我们首先查看现金和债务。
How Much Debt Does Huaneng Lancang River Hydropower Carry?
华能澜沧江水电承载多少债务?
As you can see below, at the end of March 2024, Huaneng Lancang River Hydropower had CN¥116.3b of debt, up from CN¥87.8b a year ago. Click the image for more detail. Net debt is about the same, since the it doesn't have much cash.
如下所示,截至2024年3月底,华能澜沧江水电有人民币1163亿元的债务,比一年前的人民币878亿元增加。 点击图像以获取更多详细信息。 净债务大致相同,因为它没有多少现金。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240605/0-0a3e63d51629fb4baaf09712d937c295-0-9f3e73ff79264f0992d38d157240ae06.png/big)
How Healthy Is Huaneng Lancang River Hydropower's Balance Sheet?
华能澜沧江水电的资产负债表状况如何?
Zooming in on the latest balance sheet data, we can see that Huaneng Lancang River Hydropower had liabilities of CN¥30.5b due within 12 months and liabilities of CN¥94.2b due beyond that. On the other hand, it had cash of CN¥2.28b and CN¥2.87b worth of receivables due within a year. So it has liabilities totalling CN¥119.6b more than its cash and near-term receivables, combined.
放大最新的资产负债表数据,我们可以看到华能澜沧江水电有305亿元的应于12个月内到期的负债和942亿元的应于此后到期的负债。 另一方面,它有228亿元的现金和287亿元的一年内到期的应收账款。 因此,它的负债总额比其现金和短期应收账款加起来还要多1196亿元。这是一座债务的山,即使相对于其庞大的市值1876亿元也是如此。这表明,如果公司需要紧急支撑其资产负债表,股东可能会大量稀释。
This is a mountain of leverage even relative to its gargantuan market capitalization of CN¥187.6b. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet in a hurry.
华能澜沧江水电的债务回报率比率相当高,达到6.4,表明负债负担较重。 但其利息覆盖率为5.1,相当强劲,这是一个好迹象。 重要的是,华能澜沧江水电的息税前利润基本相同。 我们更希望看到一些收益增长,因为这有助于减少债务。 分析债务水平时,资产负债表是明显的起点。 但最终,相对于其他任何事情,将决定华能澜沧江水电维持健康资产负债表的能力的是未来收益。 因此,如果您想了解专业人士的看法,您可能会发现对分析师利润预测的这份免费报告很有趣。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
我们通过查看净债务除以利息、税、折旧和摊销前的收益(EBITDA)并计算其利息费用(利息覆盖)来相对衡量公司的负债水平。这样,我们考虑债务的绝对规模以及支付的利息费用。
Huaneng Lancang River Hydropower has a rather high debt to EBITDA ratio of 6.4 which suggests a meaningful debt load. However, its interest coverage of 5.1 is reasonably strong, which is a good sign. Importantly Huaneng Lancang River Hydropower's EBIT was essentially flat over the last twelve months. We would prefer to see some earnings growth, because that always helps diminish debt. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Huaneng Lancang River Hydropower's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
最后,公司只能用切实的现金而不是会计利润偿还债务。 因此,我们总是查看多少EBIT被转化为自由现金流。 查看最近三年的情况,我们发现华能澜沧江水电的自由现金流相当于其EBIT的43%,这比我们预期的要弱。 在偿还债务方面,这并不好。 我们甚至认为华能澜沧江水电的净债务与EBITDA比率令人失望。 但至少其利息覆盖率不太糟糕。 从资产负债表来看,并考虑所有这些因素,我们确实相信债务正在使华能澜沧江水电的股票稍微有些风险。 这不一定是一件坏事,但我们通常希望减少杠杆作用。 毫无疑问,我们从资产负债表中了解债务最多。 但最终,每家公司都可能存在超出资产负债表之外的风险。 例如:我们已经注意到华能澜沧江水电的2个警告标志,您应该注意,其中1个可能很严重。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we always check how much of that EBIT is translated into free cash flow. Looking at the most recent three years, Huaneng Lancang River Hydropower recorded free cash flow of 43% of its EBIT, which is weaker than we'd expect. That's not great, when it comes to paying down debt.
最后,公司只能用切实的现金而不是会计利润偿还债务。 因此,我们总是查看多少EBIT被转化为自由现金流。 查看最近三年的情况,我们发现华能澜沧江水电的自由现金流相当于其EBIT的43%,这比我们预期的要弱。 在偿还债务方面,这并不好。
Our View
我们的观点
We'd go so far as to say Huaneng Lancang River Hydropower's net debt to EBITDA was disappointing. But at least its interest cover is not so bad. Looking at the balance sheet and taking into account all these factors, we do believe that debt is making Huaneng Lancang River Hydropower stock a bit risky. That's not necessarily a bad thing, but we'd generally feel more comfortable with less leverage. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. Case in point: We've spotted 2 warning signs for Huaneng Lancang River Hydropower you should be aware of, and 1 of them is potentially serious.
我们甚至认为华能澜沧江水电的净债务与EBITDA比率令人失望。 但至少其利息覆盖率不太糟糕。 从资产负债表来看,并考虑所有这些因素,我们确实相信债务正在使华能澜沧江水电的股票稍微有些风险。 这不一定是一件坏事,但我们通常希望减少杠杆作用。 毫无疑问,我们从资产负债表中了解债务最多。 但最终,每家公司都可能存在超出资产负债表之外的风险。 例如:我们已经注意到华能澜沧江水电的2个警告标志,您应该注意,其中1个可能很严重。
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
当然,如果你属于那种希望购买没有负债负担的股票的投资者类型,那么今天就不要犹豫,立即查看我们独家的净现金增长股票列表。
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.
对本文有反馈?关于内容有所顾虑?直接和我们联系。或者,发送电子邮件至editorial-team (at) simplywallst.com。
这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。