Hangzhou Freely Communication's (SHSE:603602) Earnings Are Of Questionable Quality
Hangzhou Freely Communication's (SHSE:603602) Earnings Are Of Questionable Quality
Unsurprisingly, Hangzhou Freely Communication Co., Ltd.'s (SHSE:603602) stock price was strong on the back of its healthy earnings report. However, we think that shareholders may be missing some concerning details in the numbers.
不出所料,杭州自由通訊有限公司's(上海證券交易所股票代碼:603602)的股價因其健康的收益報告而表現強勁。但是,我們認爲股東們可能遺漏了一些與數字相關的細節。
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240504/0-7ff34e6c59a6ddf936afdd6cfcfbc586-0-0c26798de14703fb33cf7532d1a22af8.png/big)
Examining Cashflow Against Hangzhou Freely Communication's Earnings
將現金流與杭州自由通信的收入對比研究
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). The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF.
在高級財務中,用於衡量公司將報告的利潤轉換爲自由現金流(FCF)的關鍵比率是應計比率(來自現金流)。應計比率從給定時期的利潤中減去FCF,然後將結果除以該時間內公司的平均運營資產。該比率向我們顯示了公司的利潤超過其FCF的程度。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. 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. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
這意味着負應計比率是一件好事,因爲它表明該公司帶來的自由現金流比其利潤所暗示的要多。雖然正應計比率表明非現金利潤達到一定水平不是問題,但高應計比率可以說是一件壞事,因爲它表明紙面利潤與現金流不匹配。這是因爲一些學術研究表明,高應計率往往會導致利潤下降或利潤增長減弱。
For the year to March 2024, Hangzhou Freely Communication had an accrual ratio of 0.21. Unfortunately, that means its free cash flow fell significantly short of its reported profits. Even though it reported a profit of CN¥40.0m, a look at free cash flow indicates it actually burnt through CN¥140m in the last year. We also note that Hangzhou Freely Communication's free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of CN¥140m.
在截至2024年3月的一年中,杭州自由通信的應計比率爲0.21。不幸的是,這意味着其自由現金流遠低於其報告的利潤。儘管該公司公佈了4,00萬元人民幣的利潤,但從自由現金流來看,它實際上在去年消耗了1.4億元人民幣。我們還注意到,杭州自由通信去年的自由現金流實際上也是負數,因此我們可以理解股東是否因1.4億元人民幣的流出而感到困擾。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Hangzhou Freely Communication.
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杭州自由通訊的資產負債表分析。
Our Take On Hangzhou Freely Communication's Profit Performance
我們對杭州自由通信盈利表現的看法
Hangzhou Freely Communication didn't convert much of its profit to free cash flow in the last year, which some investors may consider rather suboptimal. Therefore, it seems possible to us that Hangzhou Freely Communication's true underlying earnings power is actually less than its statutory profit. But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. So while earnings quality is important, it's equally important to consider the risks facing Hangzhou Freely Communication at this point in time. You'd be interested to know, that we found 3 warning signs for Hangzhou Freely Communication and you'll want to know about these.
去年,杭州自由通信沒有將其大部分利潤轉換爲自由現金流,一些投資者可能認爲這種情況相當不理想。因此,在我們看來,杭州自由通信的真正潛在盈利能力實際上可能低於其法定利潤。但好的一面是,其每股收益在過去三年中以極其驚人的速度增長。本文的目標是評估我們在多大程度上可以依靠法定收益來反映公司的潛力,但還有很多需要考慮的地方。因此,儘管收益質量很重要,但考慮杭州自由通信目前面臨的風險同樣重要。你可能會有興趣知道,我們發現了 “杭州自由交流” 的3個警示標誌,你會想知道這些的。
This note has only looked at a single factor that sheds light on the nature of Hangzhou Freely Communication's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. 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.
這份報告只研究了揭示杭州自由通信利潤性質的單一因素。但是,如果你能夠將注意力集中在細節上,總會有更多的事情需要發現。有些人認爲高股本回報率是優質業務的好兆頭。因此,你可能希望看到這份免費收藏的擁有高股本回報率的公司,或者這份內部人士正在購買的股票清單。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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。