Trex Company (NYSE:TREX) Seems To Use Debt Quite Sensibly
Trex Company (NYSE:TREX) Seems To Use Debt Quite Sensibly
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. As with many other companies Trex Company, Inc. (NYSE:TREX) makes use of debt. But is this debt a concern to shareholders?
戴维·伊本说得好,“波动性不是我们关心的风险。我们关心的是避免永久性资本损失。” 当我们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,因为债务超载可能导致灭顶之灾。与许多其他公司一样,美国交易所上市的Trex Company,Inc. (NYSE:TREX)利用了债务。但是,这种债务会对股东构成风险吗?
Why Does Debt Bring Risk?
为什么债务会带来风险?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. 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. When we think about a company's use of debt, we first look at cash and debt together.
一般来说,只有当一家公司无法轻松偿还债务时,债务才会成为真正的问题,无论是通过筹集资金还是通过自身现金流。最终,如果公司无法履行其偿付债务的法律义务,股东可能什么都得不到。然而,更频繁(但仍然代价高昂)的情况是,公司必须以低于市场价格的价格发行股份,永久地稀释股东,以支撑其资产负债表。当然,债务的好处是,它通常代表廉价的资本,特别是当它代替具有高回报率再投资能力的公司的稀释时。当我们考虑一家公司的债务使用情况时,我们首先看现金和债务。
How Much Debt Does Trex Company Carry?
Trex Company 承担了多少债务?
You can click the graphic below for the historical numbers, but it shows that Trex Company had US$223.0m of debt in March 2024, down from US$369.5m, one year before. And it doesn't have much cash, so its net debt is about the same.
您可以点击下面的图表查看历史数据,但它显示,Trex Company于2024年3月有2.23亿美元的债务,比一年前的3.695亿美元有所减少。它没有太多现金,因此其净债务几乎相同。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240609/0-43ab171e1b6647142c29ae776a611ae9-0-7425ef028fea848038dddec2c09ca03f.png/big)
How Healthy Is Trex Company's Balance Sheet?
Trex Company 的资产负债表健康状况怎样?
We can see from the most recent balance sheet that Trex Company had liabilities of US$369.2m falling due within a year, and liabilities of US$119.6m due beyond that. Offsetting this, it had US$3.05m in cash and US$373.5m in receivables that were due within 12 months. So it has liabilities totalling US$112.3m more than its cash and near-term receivables, combined.
我们可以从最近的资产负债表看到,Trex Company有3.692亿美元的短期到期负债,以及1.196亿美元的长期到期负债。与此同时,它有305万美元的现金和3.735亿美元的应收账款,这些应收账款在12个月内到期。所以,它的负债总额比其现金和短期应收账款加起来还多112.3万美元。
Having regard to Trex Company's size, it seems that its liquid assets are well balanced with its total liabilities. So while it's hard to imagine that the US$8.71b company is struggling for cash, we still think it's worth monitoring its balance sheet.
考虑到Trex Company的规模,其流动资产似乎与其总负债保持很好的平衡。因此,虽然很难想象这家价值87.1亿美元的公司正在为现金而苦苦挣扎,我们仍然认为有必要关注其资产负债表。
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。
Trex Company has a low debt to EBITDA ratio of only 0.56. But the really cool thing is that it actually managed to receive more interest than it paid, over the last year. So it's fair to say it can handle debt like a hotshot teppanyaki chef handles cooking. In addition to that, we're happy to report that Trex Company has boosted its EBIT by 51%, thus reducing the spectre of future debt repayments. 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 Trex Company 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.
Trex Company的负债与息税前收益率比仅为0.56。但真正酷的事情是,它在过去的一年里实际上获得了比其支付的利息更多的利息。因此可以公平地说,它能像一位高超的铁板烧大厨一样处理债务。此外,我们很高兴报道,Trex Company增加了51%的息税前收益,从而降低了未来偿债的风险。分析债务时,资产负债表显然是需要重点关注的领域。但最终,企业未来的盈利能力将决定Trex Company是否能在时间内加强其资产负债表。因此,如果您关注未来,可以查看该免费报告,以显示分析师的利润预测。
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. In the last three years, Trex Company's free cash flow amounted to 38% of its EBIT, less than we'd expect. That's not great, when it comes to paying down debt.
最后,公司只能用现金而不是会计利润偿还债务。因此,我们始终要检查该息税前利润是否转化为自由现金流。在过去三年中,Trex Company的自由现金流相当于其息税前利润的38%,低于我们的预期。在偿还债务方面并不理想。
Our View
我们的观点
The good news is that Trex Company's demonstrated ability to cover its interest expense with its EBIT delights us like a fluffy puppy does a toddler. But truth be told we feel its conversion of EBIT to free cash flow does undermine this impression a bit. Looking at the bigger picture, we think Trex Company's use of debt seems quite reasonable and we're not concerned about it. After all, sensible leverage can boost returns on equity. 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. To that end, you should be aware of the 1 warning sign we've spotted with Trex Company .
好消息是,Trex Company用其息税前收益覆盖其利息支出的能力让我们高兴,就像一只毛茸茸的小狗令一个小孩高兴一样。但真相是,我认为其息税前利润转化为自由现金流的能力会削弱这种印象一些。总体而言,我们认为Trex Company的债务使用似乎相当合理,我们对此并不担忧。毕竟,合理的杠杆比可以增加股本回报。分析债务时,资产负债表显然是需要重点关注的领域。但并非所有投资风险都存在于资产负债表中。因此,您应该注意我们已经发现的1个Trex Company警告信号。
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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