Is Zhejiang Xianju PharmaceuticalLtd (SZSE:002332) Using Too Much Debt?
Is Zhejiang Xianju PharmaceuticalLtd (SZSE:002332) Using Too Much Debt?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' 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. As with many other companies Zhejiang Xianju Pharmaceutical Co.,Ltd. (SZSE:002332) makes use of debt. But is this debt a concern to shareholders?
伯克希尔哈撒韦的查理·芒格支持的外部基金经理李录毫不掩饰地说:“最大的投资风险不是价格波动,而是是否会遭受永久性资本损失。” 当您检查一家公司的风险时,自然而然地会考虑其资产负债表,因为借债通常是企业破产的原因之一。 与许多其他公司一样,浙江仙琚制药股份有限公司(SZSE:002332)使用借款,但这种债务是否令股东担忧?
When Is Debt Dangerous?
债务何时有危险?
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. If things get really bad, the lenders can take control of the business. 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. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
债务是帮助企业成长的工具,但如果企业无法偿还债务,那么它存在于债权人的威胁之下。如果情况变得非常糟糕,债权人可以接管企业。然而,更经常发生的(但仍然成本高昂)是企业必须以低价发行股份,永久性地稀释股东,以加强其资产负债表。然而,通过取代稀释,债务可以成为那些需要资本以高回报率投资于增长的企业的极好工具。在考虑企业使用多少债务时,首先要做的是将其现金和债务合并到一起。
What Is Zhejiang Xianju PharmaceuticalLtd's Net Debt?
仙琚制药公司的净债务是多少?
As you can see below, Zhejiang Xianju PharmaceuticalLtd had CN¥197.4m of debt at March 2024, down from CN¥328.4m a year prior. But it also has CN¥1.67b in cash to offset that, meaning it has CN¥1.47b net cash.
从下面可以看出,截至2024年3月,仙琚制药有CN¥1.974亿债务,比前一年的CN¥3.284亿元减少。但它也有CN¥1.67亿的现金来抵消这笔债务,这意味着它有CN¥1.47亿的净现金。
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How Healthy Is Zhejiang Xianju PharmaceuticalLtd's Balance Sheet?
仙琚制药公司的资产负债表状况如何?
The latest balance sheet data shows that Zhejiang Xianju PharmaceuticalLtd had liabilities of CN¥1.12b due within a year, and liabilities of CN¥110.0m falling due after that. Offsetting these obligations, it had cash of CN¥1.67b as well as receivables valued at CN¥899.6m due within 12 months. So it actually has CN¥1.34b more liquid assets than total liabilities.
最新的资产负债表数据显示,浙江仙琚制药股份有限公司负有CN¥1.12亿的短期负债,以及CN¥1,100万的到期负债。抵消这些义务,它有CN¥1.67亿现金和价值CN¥899.6万的应收账款,期限为12个月。因此,它比总负债有CN¥1.34亿更多的流动资产。
This surplus suggests that Zhejiang Xianju PharmaceuticalLtd has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that Zhejiang Xianju PharmaceuticalLtd has more cash than debt is arguably a good indication that it can manage its debt safely.
这个盈余表明仙琚制药公司的资产负债表非常稳健,很可能没有太大困难就能消除其债务。简而言之,仙琚制药公司拥有的现金超过其债务,可以安全地管理其债务。
But the bad news is that Zhejiang Xianju PharmaceuticalLtd has seen its EBIT plunge 10% in the last twelve months. If that rate of decline in earnings continues, the company could find itself in a tight spot. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Zhejiang Xianju PharmaceuticalLtd 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.
但坏消息是,仙琚制药公司过去12个月的EBIt下降了10%。如果收益下降的速度继续下去,公司可能会陷入困境。分析债务水平时,资产负债表是显然的起点。但最终业务未来的盈利能力将决定仙琚制药公司是否能够加强其资产负债表。因此,如果您想查看专业人士的看法,您可能会发现有关分析师利润预测的免费报告很有趣。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. While Zhejiang Xianju PharmaceuticalLtd 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. During the last three years, Zhejiang Xianju PharmaceuticalLtd produced sturdy free cash flow equating to 57% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.
最后,虽然税务人员可能喜欢会计利润,但贷方只接受冰冷的现金。尽管仙琚制药公司在其资产负债表上有净现金,但仍值得看看其将利息和税前利润(EBIT)转化为自由现金流的能力,以帮助我们了解它积累(或侵蚀)的现金平衡的速度。在过去的三年中,浙江仙琚制药股份有限公司产生了相当稳健的自由现金流,相当于其EBIt的57%,这与我们的预期相符。这笔冰冷的现金意味着它可以在想要时减轻债务。
Summing Up
总之
While we empathize with investors who find debt concerning, you should keep in mind that Zhejiang Xianju PharmaceuticalLtd has net cash of CN¥1.47b, as well as more liquid assets than liabilities. So we are not troubled with Zhejiang Xianju PharmaceuticalLtd's debt use. 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 Zhejiang Xianju PharmaceuticalLtd is showing 1 warning sign in our investment analysis , you should know about...
虽然我们理解投资者对债务的关注,但应记住,仙琚制药公司有CN¥1.47亿的净现金,以及比负债更多的流动资产。因此,我们不担心仙琚制药公司的债务使用。毫无疑问,我们从资产负债表中了解债务的大部分内容。然而,并非所有的投资风险都存在于资产负债表中。要知道,仙琚制药公司在我们的投资分析中显示了1个警告信号,您应该知道。。。
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
当然,如果您是那种喜欢购买没有负债负担的股票的投资者,则今天就可以发现我们的独家净现金增长股清单。
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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
对本文有反馈?对内容感到担忧?请直接与我们联系。或者,发送电子邮件至editorial-team@simplywallst.com。