Is Cathay Biotech (SHSE:688065) A Risky Investment?
Is Cathay Biotech (SHSE:688065) A Risky Investment?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' 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 Cathay Biotech Inc. (SHSE:688065) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
作为一个投资者,有些人认为波动性而不是债务是思考风险的最佳方式,但沃伦·巴菲特曾经说过:“波动性远非风险的同义词。” 因此,当你考虑任何股票的风险时,需要考虑债务,因为过多的债务可能会使一家公司陷入困境。我们注意到,上海浦东吉贝尔生物制药股份有限公司(SHSE: 688065)在其资产负债表上有负债。但是,股东应该担心其使用债务吗?
When Is Debt Dangerous?
债务何时有危险?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. 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.
债务可以帮助企业,直到企业无法用新资本或自由现金流偿还债务。如果情况变得非常糟糕,贷款人可以控制企业。然而,通常情况下(但仍然昂贵)的情况是,公司必须以低廉的股价稀释股东权益,以控制债务。当然,债务可以是企业中重要的工具,特别是在资本密集型企业中。在考虑公司的债务水平时的第一步是考虑其现金和债务总额。
How Much Debt Does Cathay Biotech Carry?
上海浦东吉贝尔生物制药股份有限公司承担多少债务?
The image below, which you can click on for greater detail, shows that at March 2024 Cathay Biotech had debt of CN¥1.68b, up from CN¥1.42b in one year. However, its balance sheet shows it holds CN¥4.99b in cash, so it actually has CN¥3.31b net cash.
下面的图像展示了在2024年3月,上海浦东吉贝尔生物制药股份有限公司的债务从一年前的1.42亿元增加到了1.68亿元。然而,其资产负债表显示其持有49.9亿元的现金,因此其实有33.1亿元净现金。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240713/0-6d0ac1dd7c4bad57d514c16fe98e2c3c-0-1fd4841cf65b669558e09bccf4a390de.png/big)
How Strong Is Cathay Biotech's Balance Sheet?
上海浦东吉贝尔生物制药股份有限公司的资产负债表状况如何?
We can see from the most recent balance sheet that Cathay Biotech had liabilities of CN¥2.75b falling due within a year, and liabilities of CN¥1.00b due beyond that. Offsetting these obligations, it had cash of CN¥4.99b as well as receivables valued at CN¥440.1m due within 12 months. So it can boast CN¥1.67b more liquid assets than total liabilities.
我们可以从最近的资产负债表中看出,上海浦东吉贝尔生物制药股份有限公司有27.5亿元的短期负债和10亿元的长期负债。同时,它有49.9亿元的现金和价值4,401万人民币的应收账款在12个月内到期。因此,它可以宣称比总负债多16.7亿元的流动资产。
This surplus suggests that Cathay Biotech has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that Cathay Biotech has more cash than debt is arguably a good indication that it can manage its debt safely.
这种剩余资产表明上海浦东吉贝尔生物制药股份有限公司的资产负债表很保守,可能很容易消除其债务。简而言之,上海浦东吉贝尔生物制药股份有限公司拥有更多的现金而不是负债,这可能是其可以安全地管理债务的好迹象。
The modesty of its debt load may become crucial for Cathay Biotech if management cannot prevent a repeat of the 33% cut to EBIT 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 you can't view debt in total isolation; since Cathay Biotech will need earnings to service that debt. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.
如果管理层无法阻止EBIt上一年下降33%的情况重蹈覆辙,公司的债务负载的适度可能变得至关重要。盈利下降(如果趋势继续)最终可能使即使是适度的债务也很高风险。分析债务水平时,资产负债表是开始的显而易见的地方。但你不能把债务单独看待,因为上海浦东吉贝尔生物制药股份有限公司需要收益来偿还债务。因此,在考虑债务时,绝对值得关注盈利趋势。点击此处以获取交互式快照。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. Cathay Biotech 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. Over the last three years, Cathay Biotech saw substantial negative free cash flow, in total. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
最后,公司需要自由现金流来偿还债务;会计利润并不足以解决问题。虽然上海浦东吉贝尔生物制药股份有限公司在资产负债表上拥有净现金,但关注公司如何将其息税前利润(EBIT)转化为自由现金流,这一点仍然很有趣,因为这将影响其管理债务的需求和能力。在过去的三年中,上海浦东吉贝尔生物制药股份有限公司总的自由现金流显著为负。尽管投资者无疑期望这种情况在不久的将来得到逆转,但这显然意味着其债务使用更加高风险。
Summing Up
总之
While we empathize with investors who find debt concerning, you should keep in mind that Cathay Biotech has net cash of CN¥3.31b, as well as more liquid assets than liabilities. So although we see some areas for improvement, we're not too worried about Cathay Biotech's balance sheet. 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. For example, we've discovered 1 warning sign for Cathay Biotech that you should be aware of before investing here.
虽然我们理解担心债务的投资者,但您应该知道上海浦东吉贝尔生物制药股份有限公司有33.1亿元的净现金,以及更多的流动资产而不是负债。因此,尽管我们看到一些需要改进的地方,但我们并不太担心上海浦东吉贝尔生物制药股份有限公司的资产负债表。当您分析债务时,资产负债表显然是需要关注的地方。但并不是所有的投资风险都来自资产负债表,反之亦然。例如,我们发现了1个警告标志,提醒您在此投资之前需要注意的情况。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
说到底,有时更容易关注那些甚至不需要债务的公司。读者可以免费查看零净债务增长股票列表,立即获得。
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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