Here's Why Fujian Wanchen Biotechnology Group (SZSE:300972) Has A Meaningful Debt Burden
Here's Why Fujian Wanchen Biotechnology Group (SZSE:300972) Has A Meaningful Debt Burden
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.' 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. Importantly, Fujian Wanchen Biotechnology Group Co., Ltd. (SZSE:300972) does carry debt. But is this debt a concern to shareholders?
有人认为波动性而不是债务是投资者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。”当我们评估一家公司的风险时,自然会考虑其资产负债表,因为企业破产时往往涉及债务。重要的是,福建万臣生物科技集团股份有限公司(SZSE:300972)确实负有债务。但这些债务是否让股东担忧呢?
Why Does Debt Bring Risk?
为什么债务会带来风险?
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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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 examine debt levels, we first consider both cash and debt levels, together.
当企业无法用自由现金流或以有吸引力的价格筹集资本时,债务和其他负债对企业具有风险性。公司失败被无情地清算是资本主义的一个重要过程。虽然这不是太常见但经常出现负债企业常因贷款人强迫以低折扣的价格筹集资金而导致股东永久稀释。当然,债务的好处在于它通常代表了便宜的资本,特别是当它以高回报率再投资的公司替代稀释时。当我们考虑债务水平时,我们首先考虑现金和债务水平的相互影响。
What Is Fujian Wanchen Biotechnology Group's Net Debt?
福建万臣生物科技集团的净债务是多少?
As you can see below, at the end of March 2024, Fujian Wanchen Biotechnology Group had CN¥957.6m of debt, up from CN¥385.7m a year ago. Click the image for more detail. But it also has CN¥1.71b in cash to offset that, meaning it has CN¥747.5m net cash.
从下面可以看出,2024年3月底,福建万臣生物科技集团的债务总额达到CN ¥95760万元,高于一年前的CN ¥38570万元。但它也有CN ¥17.1亿的现金来抵消这笔债务,这意味着它有CN ¥74750万元的净现金。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240801/0-f1aa77fecf76e84a65af07a359352c6e-0-0d7b434ff2d11c4807d50f5f7bcd04f7.png/big)
A Look At Fujian Wanchen Biotechnology Group's Liabilities
关注福建万臣生物科技集团的负债
Zooming in on the latest balance sheet data, we can see that Fujian Wanchen Biotechnology Group had liabilities of CN¥2.83b due within 12 months and liabilities of CN¥591.5m due beyond that. On the other hand, it had cash of CN¥1.71b and CN¥117.0m worth of receivables due within a year. So it has liabilities totalling CN¥1.60b more than its cash and near-term receivables, combined.
通过审视最新的资产负债表数据,我们可以看到,福建万臣生物科技集团拥有的12个月内到期的债务总额为CN ¥28.3亿,超过12个月的债务总额为CN ¥59150万。另一方面,它拥有CN ¥17.1亿的现金和CN ¥11700万的应收账款,因此,它的负债加上短期现金和应收账款总额超过了其现金和短期应收账款,总计为CN ¥16亿。
Fujian Wanchen Biotechnology Group has a market capitalization of CN¥3.64b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But it's clear that we should definitely closely examine whether it can manage its debt without dilution. While it does have liabilities worth noting, Fujian Wanchen Biotechnology Group also has more cash than debt, so we're pretty confident it can manage its debt safely.
福建万臣生物科技集团的市值为CN ¥36.4亿,因此,如果有必要,它很有可能筹集资金来改善其资产负债表。但很明显,我们应该密切关注它是否能够在不稀释股权的情况下管理其债务。虽然它确实有值得注意的负债,但福建万臣生物科技集团拥有的现金比债务多,因此我们相当有信心它可以安全地管理债务。
Shareholders should be aware that Fujian Wanchen Biotechnology Group's EBIT was down 71% last year. If that earnings trend continues then paying off its debt will be about as easy as herding cats on to a roller coaster. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Fujian Wanchen Biotechnology Group's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
股东们应该注意到,福建万臣生物科技集团的EBIt去年下降了71%。如果这种盈利趋势持续下去,那么清偿债务将会像把猫赶到过山车上一样困难。毫无疑问,我们从资产负债表上了解债务的大部分信息。但是,未来的收益,而不是任何其他事情,将决定福建万臣生物科技集团在未来维持健康资产负债表的能力。因此,如果您想了解专业人士的看法,您可能会发现这份关于分析师利润预测的免费报告很有趣。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. While Fujian Wanchen Biotechnology Group 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. Over the last three years, Fujian Wanchen Biotechnology Group actually produced more free cash flow than EBIT. That sort of strong cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.
最后,企业需要自由现金流来偿还债务;会计利润并不能满足这一需求。虽然福建万臣生物科技集团在其资产负债表中有净现金,但仍然值得关注它将利息和税前利润(EBIT)转化为自由现金流的能力,以帮助我们了解它积累或消耗现金的速度。在过去三年中,福建万臣生物科技集团实际上产生的自由现金流比EBIT更多。这种强劲的现金转换让我们像Daft Punk连续演唱会上的观众一样兴奋。
Summing Up
总之
While Fujian Wanchen Biotechnology Group does have more liabilities than liquid assets, it also has net cash of CN¥747.5m. And it impressed us with free cash flow of CN¥1.0b, being 934% of its EBIT. So although we see some areas for improvement, we're not too worried about Fujian Wanchen Biotechnology Group's balance sheet. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. Case in point: We've spotted 1 warning sign for Fujian Wanchen Biotechnology Group you should be aware of.
虽然福建万臣生物科技集团的负债高于流动资产,但它也有CN ¥74750万元的净现金。并且它以10亿元的自由现金流给我们留下了深刻印象,相当于其EBIt的934%。因此,尽管我们看到了一些可以改进的地方,但我们并不太担心福建万臣生物科技集团的资产负债表。分析债务水平时,资产负债表是显而易见的起点。然而,并非所有的投资风险都在资产负债表内。例如:我们发现了一种警示福建万臣生物科技集团的1个警告信号,您应该知道。
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
归根结底,专注于没有净债务的公司往往更好。您可以访问我们的特别列表,其中包括所有表现出盈利增长轨迹的公司。这是免费的。
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有任何反馈?对内容有任何疑虑?请直接与我们联系。或者,发送电子邮件至editorial-team@simplywallst.com。