Does Wuxi Zhenhua Auto PartsLtd (SHSE:605319) Have A Healthy Balance Sheet?
Does Wuxi Zhenhua Auto PartsLtd (SHSE:605319) Have A Healthy Balance Sheet?
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.' 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. We can see that Wuxi Zhenhua Auto Parts Co.,Ltd. (SHSE:605319) does use debt in its business. But the more important question is: how much risk is that debt creating?
有人說,波動性,而不是債務,是投資者思考風險的最佳方式,但禾倫·巴菲特曾說過一句名言:“波動性遠非風險的代名詞。”因此,很明顯,當你考慮任何給定股票的風險時,你需要考慮債務,因爲過多的債務會使公司陷入困境。我們可以看到無錫振華汽車零部件有限公司, Ltd.(上海證券交易所代碼:605319)確實在其業務中使用債務。但更重要的問題是:債務創造了多大的風險?
What Risk Does Debt Bring?
債務會帶來什麼風險?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.
債務爲企業提供幫助,直到企業難以用新的資本或自由現金流還清債務。最終,如果公司無法履行償還債務的法律義務,股東可能一無所有地離開。但是,更常見(但仍然令人痛苦)的情況是,它必須以低廉的價格籌集新的股權資本,從而永久稀釋股東。當然,債務的好處是它通常代表廉價資本,尤其是當它用高回報率進行再投資的能力取代了公司的稀釋時。當我們考慮公司對債務的使用時,我們首先要同時考慮現金和債務。
What Is Wuxi Zhenhua Auto PartsLtd's Debt?
無錫振華汽車零部件有限公司的債務是多少?
The image below, which you can click on for greater detail, shows that at September 2023 Wuxi Zhenhua Auto PartsLtd had debt of CN¥680.6m, up from CN¥360.4m in one year. However, it also had CN¥348.8m in cash, and so its net debt is CN¥331.8m.
您可以點擊下圖查看更多詳情,該圖片顯示,截至2023年9月,無錫振華汽車零部件有限公司的債務爲6.806億元人民幣,高於一年內的3.604億元人民幣。但是,它也有3.488億元的現金,因此其淨負債爲3.318億元人民幣。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240306/0-ba6f47973ef59a62f5f05b6e438189a3-0-58bad649cd5b4d95537e88b66a80b4aa.png/big)
A Look At Wuxi Zhenhua Auto PartsLtd's Liabilities
看看無錫振華汽車零部件有限公司的負債
Zooming in on the latest balance sheet data, we can see that Wuxi Zhenhua Auto PartsLtd had liabilities of CN¥2.15b due within 12 months and liabilities of CN¥109.3m due beyond that. Offsetting these obligations, it had cash of CN¥348.8m as well as receivables valued at CN¥1.38b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by CN¥526.0m.
放大最新的資產負債表數據,我們可以看到,無錫振華汽車零部件有限公司在12個月內到期的負債爲21.5億元人民幣,之後到期的負債爲1.093億元人民幣。除了這些債務外,它還有3.488億元的現金以及價值13.8億元人民幣的應收賬款將在12個月內到期。因此,其負債超過其現金和(短期)應收賬款總額5.26億元人民幣。
Of course, Wuxi Zhenhua Auto PartsLtd has a market capitalization of CN¥4.81b, so these liabilities are probably manageable. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.
當然,無錫振華汽車零部件有限公司的市值爲48.1億元人民幣,因此這些負債可能是可以控制的。話雖如此,很明顯,我們應該繼續監控其資產負債表,以免情況惡化。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). 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).
我們使用兩個主要比率來告知我們相對於收益的債務水平。第一個是淨負債除以利息、稅項、折舊和攤銷前的收益(EBITDA),第二個是其利息和稅前收益(EBIT)覆蓋其利息支出(或簡稱利息保障)的多少倍。這種方法的優勢在於,我們既考慮了債務的絕對數量(包括淨負債與息稅折舊攤銷前利潤),也考慮了與該債務相關的實際利息支出(及其利息覆蓋率)。
Wuxi Zhenhua Auto PartsLtd has a low net debt to EBITDA ratio of only 0.91. And its EBIT easily covers its interest expense, being 11.1 times the size. So you could argue it is no more threatened by its debt than an elephant is by a mouse. Also positive, Wuxi Zhenhua Auto PartsLtd grew its EBIT by 27% in the last year, and that should make it easier to pay down debt, going forward. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if Wuxi Zhenhua Auto PartsLtd 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.
無錫振華汽車零部件有限公司的淨負債與息稅折舊攤銷前利潤的比率很低,僅爲0.91。而且其息稅前利潤很容易彌補其利息支出,是其規模的11.1倍。因此,你可以爭辯說,它受到債務的威脅並不比大象受到老鼠的威脅更大。同樣樂觀的是,無錫振華汽車零部件有限公司去年的息稅前利潤增長了27%,這將使未來更容易償還債務。毫無疑問,我們從資產負債表中學到的關於債務的知識最多。但最終,該業務未來的盈利能力將決定無錫振華汽車零部件有限公司能否隨着時間的推移加強其資產負債表。因此,如果您專注於未來,可以查看這份顯示分析師利潤預測的免費報告。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Wuxi Zhenhua Auto PartsLtd burned a lot of cash. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
最後,儘管稅務人員可能喜歡會計利潤,但貸款人只接受冷硬現金。因此,我們顯然需要研究息稅前利潤是否會帶來相應的自由現金流。在過去的三年中,無錫振華汽車零部件有限公司燒掉了大量現金。儘管投資者無疑預計這種情況將在適當的時候逆轉,但這顯然意味着其使用債務的風險更大。
Our View
我們的觀點
Happily, Wuxi Zhenhua Auto PartsLtd's impressive EBIT growth rate implies it has the upper hand on its debt. But we must concede we find its conversion of EBIT to free cash flow has the opposite effect. Looking at all the aforementioned factors together, it strikes us that Wuxi Zhenhua Auto PartsLtd can handle its debt fairly comfortably. Of course, while this leverage can enhance returns on equity, it does bring more risk, so it's worth keeping an eye on this one. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. For instance, we've identified 3 warning signs for Wuxi Zhenhua Auto PartsLtd (1 is potentially serious) you should be aware of.
令人高興的是,無錫振華汽車零部件有限公司令人印象深刻的息稅前利潤增長率意味着其債務佔了上風。但是我們必須承認,我們發現其將息稅前利潤轉換爲自由現金流會產生相反的效果。綜合上述所有因素,令我們震驚的是,無錫振華汽車零部件有限公司能夠相當輕鬆地處理債務。當然,儘管這種槓桿可以提高股本回報率,但它確實帶來了更多的風險,因此值得關注。在分析債務水平時,資產負債表是顯而易見的起點。但是,並非所有的投資風險都存在於資產負債表中,遠非如此。例如,我們已經確定了無錫振華汽車零部件有限公司的3個警告標誌(其中一個可能很嚴重),你應該注意。
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
歸根結底,通常最好將注意力集中在沒有淨負債的公司身上。您可以訪問我們的此類公司的特別名單(所有公司都有利潤增長記錄)。它是免費的。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。