JOYY (NASDAQ:YY) Seems To Use Debt Quite Sensibly
JOYY (NASDAQ:YY) Seems To Use Debt Quite Sensibly
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.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that JOYY Inc. (NASDAQ:YY) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
作为投资者,有人说波动性而不是债务是考虑风险的最佳方式,但沃伦·巴菲特曾说:“波动性远非风险的代名词”。 当我们考虑一家公司有多大的风险时,我们总是喜欢看它对债务的使用,因为债务超载可能会导致破产。 我们注意到JOYY Inc.(NASDAQ:YY)的资产负债表上确实有债务。 但真正的问题是,这笔债务是否使公司变得有风险。
When Is Debt A Problem?
什么时候负债才是一个问题?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. 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, plenty of companies use debt to fund growth, without any negative consequences. The first step when considering a company's debt levels is to consider its cash and debt together.
一般来说,企业只有在无法轻松偿还债务时,无论是通过筹集资金还是通过自身的现金流,债务才会成为真正的问题。 在最坏的情况下,如果公司无法偿付债权人,则可能破产。 尽管这不太常见,但我们经常看到负债累累的公司因为放贷人强迫其以低价筹集资金而永久稀释股东。 当然,有很多公司使用债务来资助增长,没有任何负面影响。 考虑一家公司的负债水平的第一步是将其现金和债务合并考虑。
What Is JOYY's Net Debt?
JOYY的净债务是多少?
As you can see below, JOYY had US$483.7m of debt at March 2024, down from US$875.1m a year prior. But on the other hand it also has US$3.15b in cash, leading to a US$2.66b net cash position.
正如您下面所看到的,JOYY在2024年3月份的债务为48370万美元,低于一年前的87510万美元。 但另一方面,它也有31.5亿美元现金,导致净现金头寸为26.6亿美元。
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How Strong Is JOYY's Balance Sheet?
JOYY的资产负债表有多强?
The latest balance sheet data shows that JOYY had liabilities of US$3.12b due within a year, and liabilities of US$103.2m falling due after that. Offsetting this, it had US$3.15b in cash and US$127.3m in receivables that were due within 12 months. So its total liabilities are just about perfectly matched by its shorter-term, liquid assets.
最新的资产负债表数据显示,JOYY有3120亿美元的负债到期,之后还有1.032亿美元的负债。 抵消这一点的是,它有31.5亿美元的现金和12730万美元的应收账款,在12个月内到期。因此,它的总负债几乎与短期的流动资产相匹配。
This short term liquidity is a sign that JOYY could probably pay off its debt with ease, as its balance sheet is far from stretched. Simply put, the fact that JOYY has more cash than debt is arguably a good indication that it can manage its debt safely.
这种短期流动性表明,JOYY可能很容易偿还其债务,因为其资产负债表远未超额。 简而言之,JOYY拥有比债务更多的现金,可以安全地管理其债务,这是一个好的迹象。
In fact JOYY's saving grace is its low debt levels, because its EBIT has tanked 42% in the last twelve months. When a company sees its earnings tank, it can sometimes find its relationships with its lenders turn sour. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if JOYY can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
事实上,JOYY的救星是其较低的债务水平,因为其EBIt在过去十二个月中急剧下降了42%。 当公司看到其盈利下降时,有时会发现其与放贷人的关系恶化。 在分析债务水平时,资产负债表是开始的显而易见的地方。 但最终,企业未来的盈利能力将决定JOYY是否能够随着时间的推移加强其资产负债表。 因此,如果您关注未来,可以查看此免费报告,其中显示了分析师的利润预测。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. While JOYY 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. Happily for any shareholders, JOYY actually produced more free cash flow than EBIT over the last two years. That sort of strong cash generation warms our hearts like a puppy in a bumblebee suit.
最后,企业需要自由现金流来偿还债务;会计利润并不足以支持。 尽管JOYY在其资产负债表上拥有净现金,但仍值得探究其将利润前利息、税项和折旧摊销(EBIT)转化为自由现金流的能力,以了解它正在多快地增加(或侵蚀)现金余额。 让任何股东感到高兴的是,JOYY在过去两年中实际上产生了比EBIt更多的自由现金流。 这种强劲的现金生成能力让我们像穿着熊蜂服的小狗一样感到温暖。
Summing Up
总之
While it is always sensible to investigate a company's debt, in this case JOYY has US$2.66b in net cash and a decent-looking balance sheet. And it impressed us with free cash flow of US$214m, being 463% of its EBIT. So we don't have any problem with JOYY's use of debt. 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. Case in point: We've spotted 3 warning signs for JOYY you should be aware of, and 1 of them is potentially serious.
虽然调查公司的债务状况总是明智的选择,但在这种情况下,JOYY拥有26.6亿美元的净现金和看起来不错的资产负债表。 它的自由现金流为21400万美元,是其EBIt的463%,这使我们印象深刻。 所以我们对JOYY的债务使用没有任何问题。 毫无疑问,我们从资产负债表中获得了关于债务的最多信息。 但是,最终,每家企业都可能存在超出资产负债表范围的风险。 事实证明:我们已经发现了JOYY的3个警告信号,您应该注意其中1个可能是严重的。
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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