Guangdong Mingyang ElectricLtd (SZSE:301291) Could Easily Take On More Debt
Guangdong Mingyang ElectricLtd (SZSE:301291) Could Easily Take On More Debt
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.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We note that Guangdong Mingyang Electric Co.,Ltd. (SZSE:301291) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
霍华德·马克斯曾经很好地表述道,与其担心股价波动,'我担心的是可能发生永久性的损失......我所知道的每个实际投资者都担心这一点。'因此,当你考虑股票的风险时,需要考虑债务,因为太多的债务可能会拖垮一家公司。我们注意到,广东明阳电器股份有限公司(SZSE:301291)的资产负债表上确实有债务。但是,股东们应该担心它的债务使用吗?
When Is Debt A Problem?
什么时候负债才是一个问题?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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.
当企业无法通过自由现金流或通过以较佳价格筹集资本来轻松实现这些义务的时候,债务和其他负债可能会对企业构成风险。在最坏的情况下,如果公司无法偿还其债权人,它可能会破产。虽然这不太常见,但我们经常看到陷入负债的公司因为借贷者迫使他们以低价筹集资本而永久稀释股东。当然,债务的好处是它通常代表了廉价资本,特别是当它用于替代具有高回报率的再投资的稀释公司时。当我们考虑公司的债务使用情况时,我们首先看现金和债务的整体情况。
How Much Debt Does Guangdong Mingyang ElectricLtd Carry?
广东明阳电器股份有限公司有多少债务?
As you can see below, Guangdong Mingyang ElectricLtd had CN¥160.3m of debt at March 2024, down from CN¥432.7m a year prior. However, it does have CN¥2.88b in cash offsetting this, leading to net cash of CN¥2.72b.
如下所示,截至2024年3月,广东明阳电器股份有限公司的债务为1.603亿人民币,低于前一年的4.327亿人民币。但是,它确实有28.8亿元的现金抵消,这导致净现金为27.2亿元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240706/0-4d1fa02b11378b124de49ca7509e65c6-0-2baaa07da75e64a6ebd6db00739a7930.png/big)
A Look At Guangdong Mingyang ElectricLtd's Liabilities
广东明阳电器股份有限公司负债情况
According to the last reported balance sheet, Guangdong Mingyang ElectricLtd had liabilities of CN¥3.46b due within 12 months, and liabilities of CN¥66.3m due beyond 12 months. Offsetting this, it had CN¥2.88b in cash and CN¥2.75b in receivables that were due within 12 months. So it can boast CN¥2.11b more liquid assets than total liabilities.
根据上次披露的资产负债表,广东明阳电器股份有限公司在12个月内有人民币3.46亿元的负债,超过12个月的负债为6630万元。 而活动资产中,有28.8亿元的现金和27.5亿元的应收款项在12个月内到期。 因此,它可以比债务多拥有21.1亿元的流动资产。总负债。
This excess liquidity suggests that Guangdong Mingyang ElectricLtd is taking a careful approach to debt. Given it has easily adequate short term liquidity, we don't think it will have any issues with its lenders. Succinctly put, Guangdong Mingyang ElectricLtd boasts net cash, so it's fair to say it does not have a heavy debt load!
这种过量的流动性表明广东明阳电器股份有限公司在债务方面采取了谨慎的态度。 鉴于它的短期流动性充足,我们认为它不会与债权人有任何问题。 简而言之,广东明阳电器股份有限公司拥有净现金,因此可以说它没有沉重的债务负担!
In addition to that, we're happy to report that Guangdong Mingyang ElectricLtd has boosted its EBIT by 76%, thus reducing the spectre of future debt repayments. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Guangdong Mingyang ElectricLtd can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
此外,我们很高兴报告广东明阳电器股份有限公司已经提高了EBIt 76%,从而减少了未来债务偿还的风险。当分析债务水平时,资产负债表是显而易见的起点。但最终业务未来的盈利能力将决定该公司是否能够随时间加强其资产负债表。因此,如果您想了解专业人士的看法,您可能会发现此免费分析师盈利预测报告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. Guangdong Mingyang ElectricLtd may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. In the last three years, Guangdong Mingyang ElectricLtd's free cash flow amounted to 30% of its EBIT, less than we'd expect. That's not great, when it comes to paying down debt.
但是我们的最后一项考虑也很重要,因为公司无法用纸利润还债务; 它需要真金白银。广东明阳电器股份有限公司的资产负债表上可能有净现金,但我们仍然很感兴趣地看待公司将其利润前利息和税前利润(EBIT)转化为自由现金流的情况,因为它将影响其管理债务的需求和能力。在过去三年中,广东明阳电器股份有限公司的自由现金流相当于其EBIt的30%,低于我们的预期。这在支付债务时并不好。
Summing Up
总之
While we empathize with investors who find debt concerning, you should keep in mind that Guangdong Mingyang ElectricLtd has net cash of CN¥2.72b, as well as more liquid assets than liabilities. And it impressed us with its EBIT growth of 76% over the last year. So we don't think Guangdong Mingyang ElectricLtd's use of debt is risky. 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. For example - Guangdong Mingyang ElectricLtd has 1 warning sign we think you should be aware of.
虽然我们理解投资者认为债务令人担忧,但您应该记住,广东明阳电器股份有限公司有2.72亿元的净现金,以及更多的流动资产而非流动负债。并且,其去年的EBIt增长了76%,给我们留下了深刻印象。因此,我们认为广东明阳电器股份有限公司的债务使用不会有风险。毫无疑问,我们从资产负债表中了解到的债务信息最为重要。但最终,每个公司都可能存在超出资产负债表之外的风险。例如-广东明阳电器股份有限公司有1个警告标志,我们认为您应该了解。
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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