Liuzhou Iron&Steel (SHSE:601003) Has Debt But No Earnings; Should You Worry?
Liuzhou Iron&Steel (SHSE:601003) Has Debt But No Earnings; Should You Worry?
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 seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We note that Liuzhou Iron&Steel Co., Ltd (SHSE:601003) does have debt on its balance sheet. But is this debt a concern to shareholders?
由Berkshire Hathaway的Charlie Munger支持的外部基金经理Li Lu在谈到投资风险时毫不掩饰地表示:“最大的投资风险不是价格的波动性,而是你是否会遭受到永久的资本损失。” 所以聪明的投资者知道,债务-通常参与破产-是评估公司风险时非常重要的因素。我们注意到柳州钢铁股份有限公司 (SHSE:601003) 的资产负债表上确实有债务。 但是这些债务对股东来说是否是一个担忧呢?
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. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. 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.
债务是帮助企业增长的工具,但如果一家企业无法偿还债权人的债务,那么它将存在于债权人的掌控之中。最终,如果公司无法履行偿还债务的法律义务,股东可能一无所获。然而,更常见的(但仍然昂贵)情况是,一家公司必须以低廉的股价稀释股东权益,以便控制债务。当然,很多公司使用债务来资助增长,没有任何负面后果。在考虑一家公司的债务水平时的第一步是同时考虑其现金和债务。
How Much Debt Does Liuzhou Iron&Steel Carry?
柳州钢铁承担了多少债务?
The chart below, which you can click on for greater detail, shows that Liuzhou Iron&Steel had CN¥30.5b in debt in June 2024; about the same as the year before. However, it does have CN¥5.33b in cash offsetting this, leading to net debt of about CN¥25.2b.
下面的图表,你可以点击以获得更详细的信息,显示柳州钢铁在2024年6月份有305亿人民币的债务;与去年大致相同。然而,它有53.3亿人民币的现金来抵消这部分债务,导致净债务约为252亿人民币。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240903/0-916044131264dcc5287b148f635382ac-0-21973f8705ca3606aaaabfae56ed039b.png/big)
How Healthy Is Liuzhou Iron&Steel's Balance Sheet?
柳州钢铁的负债表健康程度如何?
Zooming in on the latest balance sheet data, we can see that Liuzhou Iron&Steel had liabilities of CN¥25.7b due within 12 months and liabilities of CN¥19.6b due beyond that. Offsetting these obligations, it had cash of CN¥5.33b as well as receivables valued at CN¥2.34b due within 12 months. So its liabilities total CN¥37.6b more than the combination of its cash and short-term receivables.
聚焦最新资产负债表数据,我们可以看到柳州钢铁有257亿人民币的短期负债和196亿人民币的长期负债。抵消这些债务,它持有53.3亿人民币的现金,以及价值23.4亿人民币的应收账款,其中12个月内到期。因此,其负债总额比其现金和短期应收账款的总和多376亿人民币。
The deficiency here weighs heavily on the CN¥6.87b company itself, as if a child were struggling under the weight of an enormous back-pack full of books, his sports gear, and a trumpet. So we definitely think shareholders need to watch this one closely. After all, Liuzhou Iron&Steel would likely require a major re-capitalisation if it had to pay its creditors today. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Liuzhou Iron&Steel 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.
这里的赤字严重拖累了68.7亿人民币的公司本身,就像一个孩子背着充满书本、体育装备和小号的沉重背包一样。因此,我们认为股东们肯定需要密切关注这家公司。毕竟,柳州钢铁如果今天必须偿付其债权人,很可能需要进行一次重大的再资本化。当你分析债务时,资产负债表显然是需要关注的重点领域。但最终业务的未来盈利能力将决定柳州钢铁是否能够随着时间加强其资产负债表。因此,如果你专注于未来,可以查看这份免费报告,其中显示了分析师的盈利预测。
Over 12 months, Liuzhou Iron&Steel reported revenue of CN¥80b, which is a gain of 9.3%, although it did not report any earnings before interest and tax. That rate of growth is a bit slow for our taste, but it takes all types to make a world.
在过去12个月中,柳州钢铁报告了800亿人民币的营业收入,增幅为9.3%,尽管它没有报告任何利息和税前收益。这种增长速度对我们来说有点慢,但世界需要多样性。
Caveat Emptor
买方自负。
Importantly, Liuzhou Iron&Steel had an earnings before interest and tax (EBIT) loss over the last year. Indeed, it lost CN¥271m at the EBIT level. Combining this information with the significant liabilities we already touched on makes us very hesitant about this stock, to say the least. Of course, it may be able to improve its situation with a bit of luck and good execution. But we think that is unlikely, given it is low on liquid assets, and burned through CN¥377m in the last year. So we consider this a high risk stock and we wouldn't be at all surprised if the company asks shareholders for money before long. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. Be aware that Liuzhou Iron&Steel is showing 2 warning signs in our investment analysis , you should know about...
值得注意的是,柳州钢铁在过去一年中的利息和税前利润(EBIT)出现亏损。事实上,在EBIT水平上,它亏损了2.71亿人民币。将这一信息与我们已经提到的重大负债相结合,使我们对这支股票持非常犹豫态度。当然,它可能会运气好、执行良好,从而改善其状况。但我们认为这是不太可能的,因为它缺乏流动资产,并且过去一年已经亏损了3.77亿人民币。因此,我们认为这是一支高风险股票,如果公司不久的将来要求股东出资,我们一点也不会感到惊讶。资产负债表显然是分析债务时需要关注的重点领域。然而,并非所有投资风险都存在于资产负债表中,远非如此。请注意,柳州钢铁在我们的投资分析中显示了2个警示信号,你应该知道……
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
说到底,有时候更容易集中精力关注根本不需要债务的公司。读者可以免费访问零净债务增长股票列表。
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