These 4 Measures Indicate That Hangzhou Heatwell Electric Heating Technology (SHSE:603075) Is Using Debt Reasonably Well
These 4 Measures Indicate That Hangzhou Heatwell Electric Heating Technology (SHSE:603075) Is Using Debt Reasonably Well
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.' 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. We can see that Hangzhou Heatwell Electric Heating Technology Co., Ltd. (SHSE:603075) does use debt in its business. But should shareholders be worried about its use of debt?
当David Iben说'波动性不是我们关心的风险。我们关心的是避免资本永久损失。' 因此聪明的投资者很清楚债务 - 通常是破产的原因之一 - 是评估公司风险的一个非常重要因素。我们可以看到杭州海特威尔电热科技股份有限公司(SHSE:603075)在营业中有使用债务。 但是,股东们应该担心它的债务使用吗?
When Is Debt Dangerous?
债务何时有危险?
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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
一般来说,债务只有在一家公司无法轻松偿还它时才会成为实际问题,这可能通过筹集资本或使用其自有现金流进行偿还。资本主义的一部分是“创造性破坏”的过程,失败的企业会被银行家无情地清算。然而,一个更加频繁(但仍然很昂贵)的情况是,一家公司必须以白菜价发行股票,从而永久稀释股东,以此来支持其资产负债表。当然,在企业中,债务可能是一个重要的工具,尤其是在资本投入大的企业中。考虑一家公司的债务水平的第一步是将其现金和债务作为一个整体考虑。
What Is Hangzhou Heatwell Electric Heating Technology's Debt?
杭州海特威尔电热技术的债务是什么?
As you can see below, Hangzhou Heatwell Electric Heating Technology had CN¥360.2m of debt at March 2024, down from CN¥540.7m a year prior. However, it does have CN¥948.1m in cash offsetting this, leading to net cash of CN¥587.9m.
如下所示,2024年3月,杭州海特威尔电热科技的债务为人民币3.602亿元,较一年前的人民币5.407亿元减少。但是,它拥有人民币9.481亿元的现金,抵消了债务,形成净现金为人民币5.879亿元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240611/0-d4fbfe260a6c0d6bf26f31259f7d3060-0-cf66f2b1006e70b10bd6a69c62c29ee2.png/big)
How Healthy Is Hangzhou Heatwell Electric Heating Technology's Balance Sheet?
杭州海特威尔电热技术的资产负债表有多健康?
According to the last reported balance sheet, Hangzhou Heatwell Electric Heating Technology had liabilities of CN¥777.6m due within 12 months, and liabilities of CN¥14.2m due beyond 12 months. On the other hand, it had cash of CN¥948.1m and CN¥541.4m worth of receivables due within a year. So it can boast CN¥697.6m more liquid assets than total liabilities.
根据最后公布的资产负债表,杭州海特威尔电热技术的负债包括12个月内到期的人民币7.776亿元,以及超过12个月到期的人民币1.42亿元。另一方面,它的现金为人民币9.481亿元,应收账款为人民币5.414亿元。因此,它能够比其负债多拥有人民币6.976亿元的流动资产。总负债。
This short term liquidity is a sign that Hangzhou Heatwell Electric Heating Technology could probably pay off its debt with ease, as its balance sheet is far from stretched. Simply put, the fact that Hangzhou Heatwell Electric Heating Technology has more cash than debt is arguably a good indication that it can manage its debt safely.
这种短期流动性表明,杭州海特威尔电热科技很可能能够轻松偿还其债务,因为它的资产负债表与紧张程度相距甚远。简而言之,杭州海特威尔电热科技拥有比债务更多的现金,这是一个良好的迹象,表明它可以安全地管理其债务。
Fortunately, Hangzhou Heatwell Electric Heating Technology grew its EBIT by 6.4% in the last year, making that debt load look even more manageable. There's no doubt that we learn most about debt from the balance sheet. But it is Hangzhou Heatwell Electric Heating Technology'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.
幸运的是,杭州海特威尔电热技术去年的税前利润增加了6.4%,使得债务负担看起来更可管理。毫无疑问,我们从资产负债表中了解到的关于债务的大部分信息。但是,杭州海特威尔电热技术的盈利将影响资产负债表在未来的情况。因此,在考虑债务时,肯定值得看一下收益趋势。点击此处查看互动快照。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. While Hangzhou Heatwell Electric Heating Technology 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. In the last three years, Hangzhou Heatwell Electric Heating Technology's free cash flow amounted to 26% of its EBIT, less than we'd expect. That's not great, when it comes to paying down debt.
最后,一家公司只能用硬通货现金偿还债务,而不是会计利润。虽然杭州海特威尔电热技术的资产负债表上有净现金,但值得关注的是,我们需要看一下其将利润和利息(EBIT)转化为自由现金流的能力,以帮助我们理解它正在以多快的速度建立(或侵蚀)现金资产。在过去的三年中,杭州海特威尔电热技术的自由现金流仅为其EBIT的26%,低于我们的预期。在还债方面,这并不好。
Summing Up
总之
While we empathize with investors who find debt concerning, you should keep in mind that Hangzhou Heatwell Electric Heating Technology has net cash of CN¥587.9m, as well as more liquid assets than liabilities. On top of that, it increased its EBIT by 6.4% in the last twelve months. So we don't have any problem with Hangzhou Heatwell Electric Heating Technology's use of debt. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. Be aware that Hangzhou Heatwell Electric Heating Technology is showing 1 warning sign in our investment analysis , you should know about...
虽然我们同情发现债务令人担忧的投资者,但您应该记住,杭州海特威尔电热技术拥有人民币5.879亿元的净现金,以及比负债更多的流动资产。另外,它在过去的十二个月中将EBIT增加了6.4%。因此,我们对杭州海特威尔电热技术使用债务没有任何问题。毫无疑问,我们从资产负债表中了解到的关于债务的大部分信息。然而,并不是所有的投资风险都可以在资产负债表中找到 - 远非如此。请注意,杭州海特威尔电热技术在我们的投资分析中显示了1个警告信号,您应该了解......
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果您在所有这些工作之后,更感兴趣于拥有坚实资产负债表的快速发展公司,请立即查看我们的净现金成长股列表。
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