Investors Can Find Comfort In Twin Disc's (NASDAQ:TWIN) Earnings Quality
Investors Can Find Comfort In Twin Disc's (NASDAQ:TWIN) Earnings Quality
Soft earnings didn't appear to concern Twin Disc, Incorporated's (NASDAQ:TWIN) shareholders over the last week. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors.
上週,雙盤公司(納斯達克股票代碼:TWIN)的股東似乎並不關心疲軟的收益。我們認爲,較疲軟的標題數字可能會被一些積極的潛在因素所抵消。
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240508/0-d061aff75010d673c1d0c9f50a2064ac-0-05dbce0efb40ef4bb93d18005cd527a7.png/big)
Zooming In On Twin Disc's Earnings
放大 Twin Disc 的收益
As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. 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. This ratio tells us how much of a company's profit is not backed by free cashflow.
正如金融迷已經知道的那樣,現金流的應計比率是評估公司自由現金流(FCF)與利潤匹配程度的關鍵指標。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。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 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.
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。值得注意的是,有一些學術證據表明,總的來說,高應計率對短期利潤來說是個壞兆頭。
For the year to March 2024, Twin Disc had an accrual ratio of -0.13. That implies it has good cash conversion, and implies that its free cash flow solidly exceeded its profit last year. In fact, it had free cash flow of US$30m in the last year, which was a lot more than its statutory profit of US$10.4m. Notably, Twin Disc had negative free cash flow last year, so the US$30m it produced this year was a welcome improvement.
在截至2024年3月的一年中,Twin Disc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。實際上,它去年的自由現金流爲3000萬美元,遠遠超過其1,040萬美元的法定利潤。值得注意的是,Twin Disc去年的自由現金流爲負,因此其今年的3000萬美元收入是一個可喜的改善。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Twin Disc.
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Twin Disc的資產負債表分析。
Our Take On Twin Disc's Profit Performance
我們對Twin Disc利潤表現的看法
As we discussed above, Twin Disc has perfectly satisfactory free cash flow relative to profit. Based on this observation, we consider it likely that Twin Disc's statutory profit actually understates its earnings potential! Unfortunately, though, its earnings per share actually fell back over the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We've done some analysis and you can see our take on Twin Disc's balance sheet by clicking here.
正如我們上面討論的那樣,相對於利潤,Twin Disc的自由現金流非常令人滿意。基於這一觀察,我們認爲Twin Disc的法定利潤實際上可能低估了其盈利潛力!但不幸的是,其每股收益實際上在去年有所回落。歸根結底,如果你想正確地了解公司,必須考慮的不僅僅是上述因素。正如投資者必須考慮收益一樣,考慮公司資產負債表的實力也很重要。我們已經做了一些分析,你可以點擊這裏查看我們對Twin Disc資產負債表的看法。
Today we've zoomed in on a single data point to better understand the nature of Twin Disc's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. 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. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying to be useful.
今天,我們放大了單個數據點,以更好地了解Twin Disc利潤的性質。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。例如,許多人認爲高股本回報率是有利的商業經濟的標誌,而另一些人則喜歡 “關注資金”,尋找內部人士正在買入的股票。雖然可能需要你進行一些研究,但你可能會發現這份免費收集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很有用。
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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.
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。