Shareholders Can Be Confident That Suzhou Future Electrical's (SZSE:301386) Earnings Are High Quality
Shareholders Can Be Confident That Suzhou Future Electrical's (SZSE:301386) Earnings Are High Quality
Even though Suzhou Future Electrical Co., Ltd.'s (SZSE:301386) recent earnings release was robust, the market didn't seem to notice. Our analysis suggests that investors might be missing some promising details.
儘管蘇州未來電氣有限公司's(深圳證券交易所代碼:301386)最近的業績表現強勁,市場似乎沒有注意到。我們的分析表明,投資者可能遺漏了一些令人鼓舞的細節。
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A Closer Look At Suzhou Future Electrical's Earnings
仔細看看蘇州未來電氣的收益
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow.
用於衡量公司將其利潤轉換爲自由現金流(FCF)的情況的一個關鍵財務比率是應計比率。簡而言之,該比率從淨利潤中減去FCF,然後將該數字除以該時期公司的平均運營資產。這個比率告訴我們,一家公司的利潤中有多少沒有自由現金流的支持。
Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
因此,當公司的應計比率爲負時,這實際上被認爲是一件好事,但如果其應計比率爲正,則是一件壞事。雖然應計比率高於零並不令人擔憂,但我們確實認爲,當公司的應計比率相對較高時,值得注意。引用Lewellen和Resutek在2014年發表的一篇論文,“應計額較高的公司將來的利潤往往會降低”。
Suzhou Future Electrical has an accrual ratio of -0.13 for the year to March 2024. That implies it has good cash conversion, and implies that its free cash flow solidly exceeded its profit last year. Indeed, in the last twelve months it reported free cash flow of CN¥151m, well over the CN¥104.4m it reported in profit. Suzhou Future Electrical's free cash flow improved over the last year, which is generally good to see. Having said that, there is more to the story. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio.
截至2024年3月的一年中,蘇州未來電氣的應計比率爲-0.13。這意味着它具有良好的現金轉化率,也意味着其去年的自由現金流穩步超過了利潤。事實上,在過去的十二個月中,它報告的自由現金流爲1.51億元人民幣,遠遠超過其公佈的利潤1.044億元人民幣。蘇州未來電氣的自由現金流比去年有所改善,總體而言,這是值得期待的。話雖如此,故事還有更多。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。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Suzhou Future Electrical.
注意:我們始終建議投資者檢查資產負債表的實力。點擊此處查看我們對蘇州未來電氣的資產負債表分析。
How Do Unusual Items Influence Profit?
不尋常的物品如何影響利潤?
While the accrual ratio might bode well, we also note that Suzhou Future Electrical's profit was boosted by unusual items worth CN¥6.8m in the last twelve months. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. 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).
儘管應計比率可能是個好兆頭,但我們還注意到,在過去十二個月中,價值680萬元人民幣的不尋常項目提振了蘇州未來電氣的利潤。雖然獲得更高的利潤總是件好事,但來自不尋常物品的巨額捐款有時會抑制我們的熱情。當我們分析全球絕大多數上市公司時,我們發現重大不尋常的事項往往不會重演。這正如你所預料的那樣,因爲這些增強被描述爲 “不尋常”。假設這些不尋常的項目在本年度不會再次出現,因此我們預計明年的利潤將疲軟(也就是說,在業務沒有增長的情況下)。
Our Take On Suzhou Future Electrical's Profit Performance
我們對蘇州未來電氣利潤表現的看法
In conclusion, Suzhou Future Electrical's accrual ratio suggests its statutory earnings are of good quality, but on the other hand the profits were boosted by unusual items. After taking into account all these factors, we think that Suzhou Future Electrical's statutory results are a decent reflection of its underlying earnings power. If you'd like to know more about Suzhou Future Electrical as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 1 warning sign for Suzhou Future Electrical and you'll want to know about it.
總之,蘇州未來電氣的應計比率表明其法定收益質量良好,但另一方面,利潤是由不尋常的項目提振的。考慮到所有這些因素後,我們認爲蘇州未來電氣的法定業績很好地反映了其潛在的盈利能力。如果您想進一步了解蘇州未來電氣作爲一家企業,請務必了解其面臨的任何風險。你可能會有興趣知道,我們發現了蘇州未來電氣的1個警告標誌,你會想知道的。
In this article we've looked at a number of factors that can impair the utility of profit numbers, as a guide to a business. 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.
在本文中,我們研究了許多可能削弱利潤數字效用的因素,以此作爲業務指南。但是,還有很多其他方法可以告知你對公司的看法。例如,許多人認爲高股本回報率表明商業經濟狀況良好,而另一些人則喜歡 “追隨資金”,尋找內部人士正在購買的股票。因此,你可能希望看到這批擁有高股本回報率的免費公司,或者這份內部人士正在購買的股票清單。
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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。