These 4 Measures Indicate That Ovintiv (NYSE:OVV) Is Using Debt Extensively
These 4 Measures Indicate That Ovintiv (NYSE:OVV) Is Using Debt Extensively
Warren Buffett famously said, '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. Importantly, Ovintiv Inc. (NYSE:OVV) does carry debt. But should shareholders be worried about its use of debt?
沃伦·巴菲特曾经说过,“波动性远非风险的同义词”。因此,当你考虑某只股票的风险时,就很明显你需要考虑债务,因为过多的债务可能会拖垮一家公司。重要的是,Ovintiv Inc.(NYSE:OVV)确实有债务。但股东们应该担心它的债务使用吗?
What Risk Does Debt Bring?
债务带来了什么风险?
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. 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 thing to do when considering how much debt a business uses is to look at its cash and debt together.
当企业无法通过自由现金流或以有吸引力的价格筹集资金时,债务和其他负债变得有风险。 在最坏的情况下,如果企业无法偿还债权人,公司可能会破产。 虽然这并不常见,但我们经常看到负债累累的公司永久性地稀释股东,因为贷款人强迫他们以困境价格筹集资金。 当然,许多公司使用债务资助增长,没有任何负面影响。 考虑企业使用多少债务时,首先要做的是查看它的现金和债务。
What Is Ovintiv's Net Debt?
Ovintiv的净债务是多少?
As you can see below, Ovintiv had US$6.09b of debt, at June 2024, which is about the same as the year before. You can click the chart for greater detail. Net debt is about the same, since the it doesn't have much cash.
正如下图所示,截至2024年6月,Ovintiv的债务为60.9亿美元,与前一年相当。你可以点击图表以获取更详细的信息。由于现金不多,净债务情况相当。
![1724328894501](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240822/42733821-0-e7ccf7e1b267fe9dc48149079ea0112a.webp/bigjpg)
How Healthy Is Ovintiv's Balance Sheet?
Ovintiv的资产负债表有多健康?
We can see from the most recent balance sheet that Ovintiv had liabilities of US$3.20b falling due within a year, and liabilities of US$6.28b due beyond that. Offsetting this, it had US$8.00m in cash and US$1.28b in receivables that were due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$8.20b.
从最新的资产负债表可以看出,Ovintiv有US$3.2亿的短期到期负债,以及US$6.28亿的长期到期负债。相对而言,Ovintiv有US$8百万现金和US$1.28亿的应收款项,在12个月内到期。因此,其负债总和超过了其现金和(短期)应收款项的US$8.2亿。
This deficit is considerable relative to its very significant market capitalization of US$11.2b, so it does suggest shareholders should keep an eye on Ovintiv's use of debt. Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution.
与其市值US$11.2亿相比,这个赤字相当大,因此股东确实需要密切关注Ovintiv对债务的使用。如果债权人要求其增强资产负债表,股东可能面临严重稀释。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (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).
我们通过查看净债务与利息、税、折旧和摊销前收益(EBITDA)之比以及计算其利息支出由收益前利息和税(EBIT)覆盖的程度来度量一家公司的债务负载相对于其收益能力的程度。此方法的优点在于我们同时考虑了债务的绝对量(以净债务为EBITDA)以及与该债务相关的实际利息支出(以其利息覆盖倍数计算)。
While Ovintiv's low debt to EBITDA ratio of 1.2 suggests only modest use of debt, the fact that EBIT only covered the interest expense by 6.8 times last year does give us pause. But the interest payments are certainly sufficient to have us thinking about how affordable its debt is. In fact Ovintiv's saving grace is its low debt levels, because its EBIT has tanked 30% in the last twelve months. 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 it is future earnings, more than anything, that will determine Ovintiv'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.
虽然Ovintiv的债务与EBITDA的比率仅为1.2,表明其对债务的使用相对较少,但去年仅有6.8倍的EBIT覆盖了利息支出,这使我们有些担忧。但是利息支付肯定足以让我们考虑到其债务的可负担性。事实上,Ovintiv的救命稻草是其低债务水平,因为其EBIT在过去的12个月中下降了30%。收益下降(如果趋势持续下去)可能会使即使是适度的债务变得非常风险。在分析债务水平时,资产负债表是一个明显的起点。但是未来的收益,更多的是将决定Ovintiv维持健康资产负债表的能力。所以,如果您想了解专业人士的意见,您可能会发现这份关于分析师盈利预测的免费报告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So we always check how much of that EBIT is translated into free cash flow. Looking at the most recent three years, Ovintiv recorded free cash flow of 48% of its EBIT, which is weaker than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness.
但是我们最后考虑到的也很重要,因为一家公司不能用纸面利润偿还债务,它需要冷硬现金。因此,我们不断核查有多少税息前利润可以转化为自由现金流。在最近三年中,Ovintiv的自由现金流相当于其税息前利润的48%,这比我们预期的要弱。这种较弱的现金转化使得它更难处理债务。
Our View
我们的观点
We'd go so far as to say Ovintiv's EBIT growth rate was disappointing. But on the bright side, its net debt to EBITDA is a good sign, and makes us more optimistic. Once we consider all the factors above, together, it seems to us that Ovintiv's debt is making it a bit risky. Some people like that sort of risk, but we're mindful of the potential pitfalls, so we'd probably prefer it carry less debt. 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. For instance, we've identified 3 warning signs for Ovintiv that you should be aware of.
我们敢说Ovintiv的税息前利润增长速度令人失望。但好消息是,它的净债务与税息前利润倍数是一个好迹象,让我们更乐观。当我们综合考虑了以上所有因素后,我们觉得Ovintiv的债务使得它有一些风险。有些人喜欢这种风险,但我们对潜在的风险非常警惕,所以我们可能更愿意它承担较少的债务。毫无疑问,我们对债务的了解最多来自资产负债表。然而,并不是所有的投资风险都在资产负债表中,远非如此。例如,我们已经发现了3个有关Ovintiv的警示信号,你应该知道。
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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