These 4 Measures Indicate That Zhejiang Jiahua Energy Chemical IndustryLtd (SHSE:600273) Is Using Debt Reasonably Well
These 4 Measures Indicate That Zhejiang Jiahua Energy Chemical IndustryLtd (SHSE:600273) Is Using Debt Reasonably Well
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.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Zhejiang Jiahua Energy Chemical Industry Co.,Ltd. (SHSE:600273) does carry debt. But the real question is whether this debt is making the company risky.
霍华德·马克斯(Howard Marks)曾经说过,与其担心股价波动,我更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担心这个问题。当你考虑到企业的风险时,自然需要考虑到它的资产负债表,因为企业债务通常是导致公司倒闭的原因之一。然而,浙江嘉化能源化工股份有限公司(SHSE:600273)确实有债务,更重要的问题是这些债务是否使公司有财务风险。
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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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. 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. When we think about a company's use of debt, we first look at cash and debt together.
企业负债有时会帮助企业,直至企业无法偿还它,其它在使用新资本或者自由现金流清偿它。资本主义中,企业失败并被银行清算是创造性的毁灭,虽然这个过程不太常见,但我们经常看到负债企业因贷方强迫其以低价募集资本而导致股东被永久性稀释。当然,负债的好处是它往往代表了廉价资本,尤其是当它代替能以高回报率再投资的公司的稀释。当我们考虑企业使用负债时,首先要看现金和负债的总和。
What Is Zhejiang Jiahua Energy Chemical IndustryLtd's Debt?
浙江嘉化能源化工股份有限公司有多少债务?
As you can see below, Zhejiang Jiahua Energy Chemical IndustryLtd had CN¥691.9m of debt, at March 2024, which is about the same as the year before. You can click the chart for greater detail. However, its balance sheet shows it holds CN¥1.23b in cash, so it actually has CN¥534.8m net cash.
如下图所示,浙江嘉化能源化工股份有限公司在2024年3月有6.919亿人民币的债务,与前一年基本相同。点击图表以获取更多详情。然而,其资产负债表显示公司持有12.3亿元人民币现金,因此实际上净现金达到5.348亿元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240606/0-7dab586881beb8ed2ebde61f9e94237c-0-3adcefa2d06167cde7fd41dd08d01d32.png/big)
How Strong Is Zhejiang Jiahua Energy Chemical IndustryLtd's Balance Sheet?
浙江嘉化能源化工股份有限公司的资产负债表有多稳健?
According to the last reported balance sheet, Zhejiang Jiahua Energy Chemical IndustryLtd had liabilities of CN¥2.12b due within 12 months, and liabilities of CN¥232.5m due beyond 12 months. On the other hand, it had cash of CN¥1.23b and CN¥1.50b worth of receivables due within a year. So it can boast CN¥374.6m more liquid assets than total liabilities.
根据最后一份财务报表,浙江嘉化能源化工股份有限公司有212亿元人民币的负债,应于12个月内到期,并有2.325亿元人民币的负债到期超过12个月。另一方面,它持有12.3亿元人民币现金和15亿元人民币的年内到期应收款项。它具有比其负债额多3.746亿人民币的流动资产。总负债。
This short term liquidity is a sign that Zhejiang Jiahua Energy Chemical IndustryLtd could probably pay off its debt with ease, as its balance sheet is far from stretched. Succinctly put, Zhejiang Jiahua Energy Chemical IndustryLtd boasts net cash, so it's fair to say it does not have a heavy debt load!
短期流动性良好表明浙江嘉化能源化工股份有限公司可能很容易地偿还其债务,因为其资产负债表远未超负荷。简言之,浙江嘉化能源化工股份有限公司拥有净现金,因此可以说它没有沉重的负债负担!
It is just as well that Zhejiang Jiahua Energy Chemical IndustryLtd's load is not too heavy, because its EBIT was down 33% over the last year. Falling earnings (if the trend continues) could eventually make even modest debt quite risky. When analysing debt levels, the balance sheet is the obvious place to start. But it is Zhejiang Jiahua Energy Chemical IndustryLtd's earnings that will influence how the balance sheet holds up in the future. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.
很幸运浙江嘉化能源化工股份有限公司的负债不算太重,因为其税前利润在过去一年中下降了33%。持续下降的收益(趋势继续)可能会使即使是温和的负债变得非常风险。在分析债务水平时,资产负债表是开始的明显位置。但浙江嘉化能源化工股份有限公司的收益将影响资产负债表未来的情况。因此,在考虑债务时,绝对有必要关注收益趋势。单击此处以进行交互式快照。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. While Zhejiang Jiahua Energy Chemical IndustryLtd has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. During the last three years, Zhejiang Jiahua Energy Chemical IndustryLtd produced sturdy free cash flow equating to 55% 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.
但最终我们必须考虑现金,因为企业无法通过纸质利润支付债务,需要现金。尽管浙江嘉化能源化工股份有限公司在其资产负债表上有净现金,但看看它将税前利润转化为自由现金流的能力仍然非常重要,以帮助我们了解它在建立(或消耗)现金余额方面的快慢。在过去三年中,浙江嘉化能源化工股份有限公司创造了强大的自由现金流,相当于其税前利润的55%,这正是我们所期望的。这种自由现金流使公司有能力在适当的时候偿还债务。
Summing Up
总之
While it is always sensible to investigate a company's debt, in this case Zhejiang Jiahua Energy Chemical IndustryLtd has CN¥534.8m in net cash and a decent-looking balance sheet. So we are not troubled with Zhejiang Jiahua Energy Chemical IndustryLtd's debt use. 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. These risks can be hard to spot. Every company has them, and we've spotted 1 warning sign for Zhejiang Jiahua Energy Chemical IndustryLtd you should know about.
虽然调查公司的债务水平总是明智的,但在这种情况下,浙江嘉化能源化工股份有限公司持有5.348亿元人民币的净现金和看上去不错的资产负债表。因此,我们对浙江嘉化能源化工股份有限公司的债务使用不太担忧。在分析债务水平时,资产负债表是开始的明显位置。但最终,除资产负债表外,每个公司都可能存在超过资产负债表的风险。这些风险很难发现。每个公司都有这些风险,我们已经发现了一些浙江嘉化能源化工股份有限公司的警告标志,您应该知道。
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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