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Evolent Health (NYSE:EVH) Seems To Use Debt Quite Sensibly

Evolent Health (NYSE:EVH) Seems To Use Debt Quite Sensibly

evolent health (纽交所:EVH) 似乎很理智地使用债务
Simply Wall St ·  11/18 03:11

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' 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 Evolent Health, Inc. (NYSE:EVH) does have debt on its balance sheet. But should shareholders be worried about its use of debt?

霍华德·马克斯说得好,他说的不是担心股价的波动,而是 “永久损失的可能性是我担心的风险... 也是我认识的每位实际投资者所担心的风险。”当我们考虑一家公司的风险时,我们总是喜欢考虑其债务的用途,因为债务过载可能导致破产。我们注意到,Evolent Health, Inc.(纽约证券交易所代码:EVH)的资产负债表上确实有债务。但是,股东是否应该担心其债务的使用?

When Is Debt Dangerous?

债务何时危险?

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. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together.

当企业无法通过自由现金流或以诱人的价格筹集资金来轻松履行这些义务时,债务和其他负债就会成为风险。资本主义的组成部分是 “创造性破坏” 过程,在这种过程中,倒闭的企业被银行家无情地清算。但是,更常见(但仍然令人痛苦)的情况是,它必须以低廉的价格筹集新的股本,从而永久稀释股东。但是,通过取代稀释,债务可以成为需要资本以高回报率投资增长的企业的极好工具。考虑公司的债务水平的第一步是同时考虑其现金和债务。

What Is Evolent Health's Debt?

Evolent Health 的债务是什么?

As you can see below, Evolent Health had US$599.7m of debt, at September 2024, which is about the same as the year before. You can click the chart for greater detail. However, because it has a cash reserve of US$96.6m, its net debt is less, at about US$503.1m.

如下所示,截至2024年9月,Evolent Health的债务为5.997亿美元,与前一年大致相同。您可以单击图表以获取更多详细信息。但是,由于其现金储备为9,660万美元,其净负债较少,约为5.031亿美元。

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NYSE:EVH Debt to Equity History November 18th 2024
纽约证券交易所:EVH 债务与股本比率的历史记录 2024 年 11 月 18 日

How Healthy Is Evolent Health's Balance Sheet?

Evolent Health 的资产负债表有多健康?

We can see from the most recent balance sheet that Evolent Health had liabilities of US$523.7m falling due within a year, and liabilities of US$752.2m due beyond that. On the other hand, it had cash of US$96.6m and US$407.9m worth of receivables due within a year. So its liabilities total US$771.4m more than the combination of its cash and short-term receivables.

我们可以从最新的资产负债表中看出,Evolent Health的负债为5.237亿美元,一年后到期的负债为7.522亿美元。另一方面,它有9,660万美元的现金和价值4.079亿美元的应收账款在一年内到期。因此,其负债总额比其现金和短期应收账款的总和高出7.714亿美元。

This deficit isn't so bad because Evolent Health is worth US$1.42b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.

这种赤字还不错,因为Evolent Health的市值为14.2亿美元,因此,如果有需要,可能会筹集足够的资金来支撑其资产负债表。但是,我们绝对希望留意其债务带来过大风险的迹象。

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).

为了扩大公司相对于收益的负债规模,我们计算其净负债除以利息、税项、折旧和摊销前的收益(EBITDA),将其利息和税前收益(EBIT)除以利息支出(利息保障)。这种方法的优势在于,我们既考虑了债务的绝对数量(包括净负债与息税折旧摊销前利润),也考虑了与该债务相关的实际利息支出(及其利息覆盖率)。

While we wouldn't worry about Evolent Health's net debt to EBITDA ratio of 4.1, we think its super-low interest cover of 1.3 times is a sign of high leverage. In large part that's due to the company's significant depreciation and amortisation charges, which arguably mean its EBITDA is a very generous measure of earnings, and its debt may be more of a burden than it first appears. So shareholders should probably be aware that interest expenses appear to have really impacted the business lately. However, it should be some comfort for shareholders to recall that Evolent Health actually grew its EBIT by a hefty 2,101%, over the last 12 months. If that earnings trend continues it will make its debt load much more manageable in the future. 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 Evolent Health'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.

尽管我们不担心Evolent Health的净负债与息税折旧摊销前利润的比率为4.1,但我们认为其1.3倍的超低利息覆盖率是高杠杆率的标志。这在很大程度上是由于该公司收取了巨额折旧和摊销费用,这可以说意味着其息税折旧摊销前利润是衡量收益的非常慷慨的指标,其债务可能比最初看起来更具负担。因此,股东可能应该意识到,最近利息支出似乎确实影响了业务。但是,回想一下,在过去的12个月中,Evolent Health的息税前利润实际上增长了2,101%,这应该让股东感到欣慰。如果这种收益趋势继续下去,它将使其未来的债务负担更加易于管理。毫无疑问,我们从资产负债表中学到的关于债务的知识最多。但是,未来的收益比什么都重要,将决定Evolent Health未来维持健康资产负债表的能力。因此,如果你想看看专业人士的想法,你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 company can only pay off debt with cold hard cash, not accounting profits. So we always check how much of that EBIT is translated into free cash flow. Happily for any shareholders, Evolent Health actually produced more free cash flow than EBIT over the last three years. That sort of strong cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.

最后,公司只能用冷硬现金偿还债务,不能用会计利润偿还债务。因此,我们总是检查该息税前利润中有多少转化为自由现金流。令所有股东感到高兴的是,在过去三年中,Evolent Health产生的自由现金流实际上超过了息税前利润。当Daft Punk音乐会的节拍下降时,这种强劲的现金转换让我们和观众一样兴奋。

Our View

我们的观点

Evolent Health's conversion of EBIT to free cash flow suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. But we must concede we find its interest cover has the opposite effect. We would also note that Healthcare Services industry companies like Evolent Health commonly do use debt without problems. All these things considered, it appears that Evolent Health can comfortably handle its current debt levels. On the plus side, this leverage can boost shareholder returns, but the potential downside is more risk of loss, so it's worth monitoring the balance sheet. 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 example - Evolent Health has 1 warning sign we think you should be aware of.

Evolent Health将息税前利润转换为自由现金流,这表明它可以像克里斯蒂亚诺·罗纳尔多在对阵14岁以下的守门员的比赛中进球一样轻松地处理债务。但是我们必须承认,我们发现它的利息保障起到了相反的作用。我们还要指出,像Evolent Health这样的医疗服务行业公司通常会毫无问题地使用债务。考虑到所有这些因素,Evolent Health似乎可以轻松应对其当前的债务水平。从好的方面来看,这种杠杆作用可以提高股东的回报,但潜在的缺点是损失风险更大,因此值得关注资产负债表。毫无疑问,我们从资产负债表中学到的关于债务的知识最多。但是,并非所有的投资风险都存在于资产负债表中,远非如此。例如,Evolent Health 有 1 个警告信号,我们认为你应该注意。

Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.

当然,如果你是那种喜欢在没有债务负担的情况下购买股票的投资者,那么请立即查看我们的独家净现金增长股票清单。

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Simply Wall St 的这篇文章本质上是笼统的。我们仅使用公正的方法提供基于历史数据和分析师预测的评论,我们的文章并非旨在提供财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不会考虑最新的价格敏感型公司公告或定性材料。华尔街只是没有持有上述任何股票的头寸。

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