Is Chow Tai Fook Jewellery Group (HKG:1929) Using Too Much Debt?
Is Chow Tai Fook Jewellery Group (HKG:1929) 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.' 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. As with many other companies Chow Tai Fook Jewellery Group Limited (HKG:1929) makes use of debt. But the more important question is: how much risk is that debt creating?
巴菲特旗下的外部基金经理查理·芒格支持的李录明确表示:“最大的投资风险不是价格波动,而是资本永久损失。”因此,当您考虑任何给定股票的风险时,需要考虑负债情况,因为过多的负债可能会拖垮一家公司。与许多其他公司一样,周大福珠宝集团有限公司(HKG:1929)利用了债务。但更重要的问题是:这些债务带来了多少风险?
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. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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. The first step when considering a company's debt levels is to consider its cash and debt together.
债务是帮助企业成长的工具,但如果企业无力偿还债权人的债务,那么它就会受到他们的支配。最终,如果公司无法履行偿还债务的法律义务,股东们可能会一无所有。虽然这种情况不太常见,但我们经常看到负债累累的企业由于贷款人以低价迫使它们筹集资金而永久稀释股东权益。当然,债务的好处是它通常表示廉价资本,特别是当它取代公司能以高回报率重新投资的情况下。考虑公司的债务水平时,第一步是考虑其现金和债务的总和。
What Is Chow Tai Fook Jewellery Group's Net Debt?
周大福珠宝集团的净债务是多少?
As you can see below, at the end of March 2024, Chow Tai Fook Jewellery Group had HK$28.6b of debt, up from HK$20.9b a year ago. Click the image for more detail. On the flip side, it has HK$7.70b in cash leading to net debt of about HK$20.9b.
正如您下面所看到的,在2024年3月底,周大福珠宝集团的债务为286亿港元,比一年前的209亿港元增加了。点击图像以获得更多详细信息。另一方面,它拥有77亿港元的现金,导致净债务约为209亿港元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240802/0-a2a56d3491b1ef22cbf6d78c9376d117-0-724cfe4683d1002dca8327689ff7d046.png/big)
How Healthy Is Chow Tai Fook Jewellery Group's Balance Sheet?
周大福珠宝集团的资产负债表有多健康?
According to the last reported balance sheet, Chow Tai Fook Jewellery Group had liabilities of HK$57.5b due within 12 months, and liabilities of HK$4.55b due beyond 12 months. Offsetting these obligations, it had cash of HK$7.70b as well as receivables valued at HK$6.84b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by HK$47.5b.
根据最后一份报告的资产负债表,周大福珠宝集团在12个月内有575亿港元的负债,并有45.5亿港元的负债超过12个月。抵消这些义务,它有77亿港元的现金以及680亿港元的应收账款在12个月内到期。所以它的负债超过现金和(近期)应收账款的总和475亿港元。
This deficit is considerable relative to its market capitalization of HK$68.5b, so it does suggest shareholders should keep an eye on Chow Tai Fook Jewellery Group's use of debt. Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution.
相对于其市值685亿港元,这个赤字相当大,因此它确实提示股东应密切关注周大福珠宝集团的债务使用情况。如果其贷款人要求其弥补资产负债表,股东可能面临严重的稀释。
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).
为了衡量公司相对于其收益的债务情况,我们计算其净负债除以利息、税项、折旧和摊销前收益(EBITDA)和其利息支出除以利息前收益(EBIT)的比例(其利息覆盖率)。这种方法的优点是,我们既考虑了债务的绝对量(净负债与 EBITDA),又考虑到了与该债务相关的实际利息支出(其利息覆盖率)。
Chow Tai Fook Jewellery Group's net debt to EBITDA ratio of about 2.0 suggests only moderate use of debt. And its commanding EBIT of 19.9 times its interest expense, implies the debt load is as light as a peacock feather. We note that Chow Tai Fook Jewellery Group grew its EBIT by 21% in the last year, and that should make it easier to pay down debt, going forward. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Chow Tai Fook Jewellery Group 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.
周大福珠宝集团的净债务与税息折旧及摊销前利润比约为2.0,表明仅适度使用债务。它超强的息税前利润利息倍数19.9倍,意味着债务负载轻如孔雀羽毛。我们注意到周大福珠宝集团去年EBIT增长了21%,这应该使其更容易在未来偿还债务。在分析债务水平时,资产负债表是明显的起点。但最终,业务未来的盈利能力将决定周大福珠宝集团是否能够随着时间的推移加强其资产负债表。因此,如果您想了解专业人士的想法,您可能会发现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. So it's worth checking how much of that EBIT is backed by free cash flow. Happily for any shareholders, Chow Tai Fook Jewellery Group actually produced more free cash flow than EBIT over the last three years. There's nothing better than incoming cash when it comes to staying in your lenders' good graces.
最后,业务需要自由现金流来偿还债务;会计利润不足以做到这一点。因此,值得检查的是,EBIt有多少是由自由现金流支持的。幸运的是,对于任何股东来说,周大福珠宝集团在过去三年里产生的自由现金流比EBIt还多。在保持对贷款人友好方面,没有任何比进账的现金更好的。
Our View
我们的观点
Chow Tai Fook Jewellery Group's interest cover suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. But, on a more sombre note, we are a little concerned by its level of total liabilities. Taking all this data into account, it seems to us that Chow Tai Fook Jewellery Group takes a pretty sensible approach to debt. While that brings some risk, it can also enhance returns for shareholders. 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 Chow Tai Fook Jewellery Group is showing 2 warning signs in our investment analysis , you should know about...
周大福珠宝集团的利息保障倍数表明,它可以像C罗对阵14岁以下门将时那样轻松地处理其债务。但是,更为严重的是,我们对其总负债水平有些担忧。综合考虑所有这些数据,我们认为周大福珠宝集团对待债务的方法非常明智。虽然这带来了一些风险,但也可以增强股东的回报。毫无疑问,我们从资产负债表中了解到更多关于债务的信息。然而,并非所有投资风险都在资产负债表中——远非如此。请注意,在我们的投资分析中,周大福珠宝集团显示出2个警示信号,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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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。