These 4 Measures Indicate That Ningbo Kangqiang Electronics (SZSE:002119) Is Using Debt Reasonably Well
These 4 Measures Indicate That Ningbo Kangqiang Electronics (SZSE:002119) Is Using Debt Reasonably Well
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' 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. We can see that Ningbo Kangqiang Electronics Co., Ltd (SZSE:002119) does use debt in its business. But is this debt a concern to shareholders?
沃伦·巴菲特曾说:“波动性远非风险的同义词。”当我们研究一个公司的风险时,考虑其资产负债表是很自然的事情,因为当一个企业破产时,通常会涉及债务。我们可以看到,宁波康强电子股份有限公司(SZSE: 002119)的业务确实有债务。但这笔债务会不会让股东担忧呢?
When Is Debt A Problem?
什么时候负债才是一个问题?
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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.
债务是帮助企业成长的工具,但如果一个企业无法偿还债权人的债务,那么该企业则存在于债权人的摆布之下。资本主义包含的一个重要过程是“创造性破坏”,即失败的企业被它们的银行家无情的清算。然而,更常见的(但仍然痛苦的)情况是,它不得不以较低的价格募集新的股权资本,从而永久性的稀释股东的权益。当然,债务对于企业来说也是一个重要的工具,特别是对于资本密集型企业来说。当我们检查债务水平时,我们首先考虑现金和债务水平。
What Is Ningbo Kangqiang Electronics's Net Debt?
宁波康强电子的净债务是多少?
The image below, which you can click on for greater detail, shows that at March 2024 Ningbo Kangqiang Electronics had debt of CN¥717.8m, up from CN¥612.9m in one year. However, because it has a cash reserve of CN¥174.9m, its net debt is less, at about CN¥542.9m.
下图是2024年3月的情况,您可以点击查看更多详细信息,宁波康强电子的债务为71780万人民币,比一年前的61290万人民币有所增加。但由于该公司有17490万人民币的现金储备,因此它的净债务较少,约为54290万人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240614/0-21b5f98e854156e6e6e9f1b45e000406-0-4c33a52e5b12c4cd0ac6aec37dbf86b3.png/big)
How Healthy Is Ningbo Kangqiang Electronics' Balance Sheet?
宁波康强电子的资产负债表有多健康?
The latest balance sheet data shows that Ningbo Kangqiang Electronics had liabilities of CN¥966.5m due within a year, and liabilities of CN¥62.0m falling due after that. Offsetting these obligations, it had cash of CN¥174.9m as well as receivables valued at CN¥490.4m due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by CN¥363.3m.
最新的资产负债表数据显示,宁波康强电子有96650万人民币的短期到期负债和6200万人民币的长期到期负债。抵消这些承诺,它有17490万人民币的现金以及1240万人民币的应收账款。因此,它的负债超过它的现金和(短期)应收账款约为36330万人民币。
Of course, Ningbo Kangqiang Electronics has a market capitalization of CN¥4.57b, so these liabilities are probably manageable. But there are sufficient liabilities that we would certainly recommend shareholders continue to monitor the balance sheet, going forward.
当然,宁波康强电子的市值为4.57亿人民币,因此这些负债可能是可以承受的。但有足够的负债,我们肯定建议股东继续关注资产负债表的变化。
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。
Ningbo Kangqiang Electronics has a debt to EBITDA ratio of 3.4, which signals significant debt, but is still pretty reasonable for most types of business. However, its interest coverage of 59.3 is very high, suggesting that the interest expense on the debt is currently quite low. Importantly, Ningbo Kangqiang Electronics's EBIT fell a jaw-dropping 20% in the last twelve months. If that decline continues then paying off debt will be harder than selling foie gras at a vegan convention. When analysing debt levels, the balance sheet is the obvious place to start. But you can't view debt in total isolation; since Ningbo Kangqiang Electronics will need earnings to service that debt. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.
宁波康强电子的债务与息税前利润折旧及摊销(EBITDA)比率为3.4,这表明债务相当大,但对于大多数类型的企业来说还是相当合理的。然而,它的利息偿付能力非常高,利息支出目前相当低,为59.3倍。值得注意的是,宁波康强电子的EBIt在过去十二个月中惊人地下降了20%。如果这种下降持续下去,那么偿还债务将比在素食主义大会上出售鹅肝酱更加困难。分析债务水平时,资产负债表是固然一个显而易见的起点。但是,您不能孤立地看待债务,因为宁波康强电子需要收益来支付债务。因此,如果您想了解更多有关它的收益的信息,您可以查看此处有关其长期收益变化趋势图。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So it's worth checking how much of that EBIT is backed by free cash flow. During the last three years, Ningbo Kangqiang Electronics generated free cash flow amounting to a very robust 92% of its EBIT, more than we'd expect. That puts it in a very strong position to pay down debt.
但我们的最后考虑也很重要,因为无法用虚拟的收益支付债务; 需要用真金白银。因此,检查由自由现金流支持的EBIt量有多少是值得的。在过去三年中,宁波康强电子的自由现金流总额占其EBIt总额的比例非常高达92%,这比我们预期的要多。这使它处于非常强大的偿还债务的位置。
Our View
我们的观点
Based on what we've seen Ningbo Kangqiang Electronics is not finding it easy, given its EBIT growth rate, but the other factors we considered give us cause to be optimistic. In particular, we are dazzled with its interest cover. Considering this range of data points, we think Ningbo Kangqiang Electronics is in a good position to manage its debt levels. But a word of caution: we think debt levels are high enough to justify ongoing monitoring. 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. For example Ningbo Kangqiang Electronics has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
基于我们已经看到的,宁波康强电子正处于困难时期,考虑到它的EBIt增长率,但我们考虑的其他因素使我们有理由对其持乐观态度。尤其是我们对它的利息覆盖率感到印象深刻。考虑到这些数据点,我们认为宁波康强电子有足够的能力管理其债务水平。但需要注意的是,我们认为债务水平已经高到需要继续监控的程度。从资产负债表中,我们无疑可以了解到大多数有关债务的信息。然而,并非所有的投资风险都来自于资产负债表―千万不要忘记这一点。例如,宁波康强电子有2个警示信号(还有1个让我们感到有点不舒服),我们认为您应该知道这些信号。
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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