Shareholders didn't seem to be thrilled with Hunan Airbluer Environmental Protection Technology Co., Ltd.'s (SZSE:301259) recent earnings report, despite healthy profit numbers. Our analysis suggests they may be concerned about some underlying details.
View our latest analysis for Hunan Airbluer Environmental Protection Technology
![earnings-and-revenue-history](https://usnewsfile.futunn.com/pic/0-14291619-0-43ed67a9a6c08f6614bc8ad8f378345b.png/big)
SZSE:301259 Earnings and Revenue History August 31st 2022
A Closer Look At Hunan Airbluer Environmental Protection Technology's Earnings
In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow.
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
For the year to June 2022, Hunan Airbluer Environmental Protection Technology had an accrual ratio of 0.48. As a general rule, that bodes poorly for future profitability. And indeed, during the period the company didn't produce any free cash flow whatsoever. Even though it reported a profit of CN¥67.1m, a look at free cash flow indicates it actually burnt through CN¥116m in the last year. Coming off the back of negative free cash flow last year, we imagine some shareholders might wonder if its cash burn of CN¥116m, this year, indicates high risk. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Hunan Airbluer Environmental Protection Technology.
The Impact Of Unusual Items On Profit
The fact that the company had unusual items boosting profit by CN¥7.8m, in the last year, probably goes some way to explain why its accrual ratio was so weak. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is).
Our Take On Hunan Airbluer Environmental Protection Technology's Profit Performance
Summing up, Hunan Airbluer Environmental Protection Technology received a nice boost to profit from unusual items, but could not match its paper profit with free cash flow. For the reasons mentioned above, we think that a perfunctory glance at Hunan Airbluer Environmental Protection Technology's statutory profits might make it look better than it really is on an underlying level. If you'd like to know more about Hunan Airbluer Environmental Protection Technology as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 2 warning signs we've spotted with Hunan Airbluer Environmental Protection Technology (including 1 which is a bit concerning).
Our examination of Hunan Airbluer Environmental Protection Technology has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.
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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.
股東們似乎對此並不滿意湖南艾爾布魯爾環保科技有限公司(SZSE:301259)儘管利潤數字健康,但最近的收益報告。我們的分析表明,他們可能對一些潛在的細節感到擔憂。
查看我們對湖南空藍環保科技的最新分析
![earnings-and-revenue-history](https://usnewsfile.futunn.com/pic/0-14291619-0-43ed67a9a6c08f6614bc8ad8f378345b.png/big)
深交所:301259年度盈利及收入歷史2022年8月31日
細看湖南空藍環保科技的盈利
在高端金融領域,衡量一家公司將報告利潤轉換為自由現金流(FCF)的程度的關鍵比率是應計比率(來自現金流)。為了得到應計比率,我們首先從一個時期的利潤中減去FCF,然後用這個數字除以該時期的平均運營資產。這個比率告訴我們,一家公司的利潤中有多少不是由自由現金流支持的。
因此,負的應計比率對公司是積極的,而正的應計比率是負的。雖然應計比率為正並不是問題,這表明非現金利潤達到了一定的水平,但高的應計比率可以説是一件壞事,因為它表明賬面利潤與現金流不匹配。值得注意的是,有一些學術證據表明,一般來説,高應計比率對短期利潤來説不是一個好兆頭。
截至2022年6月止年度,湖南空藍環保科技的應計比率為0.48。一般來説,這對未來的盈利能力來説是個不好的預兆。事實上,在此期間,該公司沒有產生任何自由現金流。儘管該公司報告利潤為6710萬加元,但看看自由現金流就會發現,該公司去年實際上燒掉了1.16億加元。在去年自由現金流為負的背景下,我們可以想象,一些股東可能會懷疑,該公司今年1.16億加元的現金消耗是否意味着高風險。然而,這並不是需要考慮的全部問題。我們可以看到,不尋常的項目影響了其法定利潤,從而影響了應計比率。
注:我們總是建議投資者檢查資產負債表的實力。點擊此處查看我們對湖南空氣藍環保科技的資產負債表分析。
異常項目對利潤的影響
該公司去年有一些不尋常的項目使利潤增加了780萬加元,這一事實很可能在一定程度上解釋了為什麼它的應計比率如此之低。雖然我們喜歡看到利潤增加,但當不尋常的項目做出了很大貢獻時,我們往往會更加謹慎。我們對全球大多數上市公司進行了統計,不尋常的項目在性質上是一次性的,這是非常常見的。考慮到這些提振被描述為“不尋常的”,這正如你所預期的那樣。假設這些不同尋常的項目在本年度不會再次出現,我們因此預計明年的利潤會更弱(也就是説,在沒有業務增長的情況下)。
我們對湖南空藍環保科技盈利業績的看法
綜上所述,湖南空藍環保科技從異常項目中獲利獲得了不錯的提振,但賬面利潤與自由現金流無法匹配。基於上述原因,我們認為,敷衍地看一眼湖南空藍環保科技的法定利潤,可能會讓它在根本層面上看起來比實際情況好。如果你想更多地瞭解湖南空藍環保科技作為一個企業,瞭解它所面臨的任何風險是很重要的。為此,您應該瞭解2個警告標誌我們已經發現了湖南空藍環保科技(包括1,這是一個有點令人擔憂)。
我們對湖南空藍環保科技的調查集中在某些因素上,這些因素可能會讓該公司的收益看起來比實際情況更好。在此基礎上,我們對此持懷疑態度。但還有很多其他方式可以讓你瞭解一家公司的看法。例如,許多人認為高股本回報率是有利的商業經濟指標,而另一些人則喜歡“跟着錢走”,尋找內部人士正在買入的股票。所以你可能想看看這個免費擁有高股本回報率的公司的集合,或內部人士正在購買的這份股票清單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。