Kinco Automation (Shanghai)Ltd (SHSE:688160) Has A Pretty Healthy Balance Sheet
Kinco Automation (Shanghai)Ltd (SHSE:688160) Has A Pretty Healthy Balance Sheet
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' 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 Kinco Automation (Shanghai) Co.,Ltd (SHSE:688160) does use debt in its business. But is this debt a concern to shareholders?
傳奇基金經理李露(由查理·芒格支持)曾經說過:“最大的投資風險不是價格的波動,而是你是否會遭受永久的資本損失。”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。我們可以看到金科自動化(上海)有限公司, Ltd(上海證券交易所股票代碼:688160)確實在其業務中使用了債務。但是這筆債務是股東關心的問題嗎?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
債務是幫助企業增長的工具,但是如果企業無法還清貸款人的債務,那麼債務就任其擺佈。資本主義的組成部分是 “創造性破壞” 過程,在這種過程中,倒閉的企業被銀行家無情地清算。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本,從而永久稀釋股東。但是,通過取代稀釋,對於需要資本以高回報率投資增長的企業來說,債務可以成爲一個非常好的工具。在考慮企業使用多少債務時,要做的第一件事是同時考慮其現金和債務。
How Much Debt Does Kinco Automation (Shanghai)Ltd Carry?
金科自動化(上海)有限公司揹負了多少債務?
You can click the graphic below for the historical numbers, but it shows that as of March 2024 Kinco Automation (Shanghai)Ltd had CN¥40.0m of debt, an increase on none, over one year. However, it does have CN¥343.7m in cash offsetting this, leading to net cash of CN¥303.7m.
你可以點擊下圖查看歷史數字,但它顯示,截至2024年3月,Kinco Automation(上海)有限公司在一年內有4,00萬元人民幣的債務,比零有所增加。但是,它確實有3.437億元的現金抵消了這一點,淨現金爲3.037億元人民幣。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240514/0-9e53ffc1ed55aa1316489f8fa8d67a6b-0-3aee20c21db9fb3c266e66e9f6a62139.png/big)
How Strong Is Kinco Automation (Shanghai)Ltd's Balance Sheet?
金科自動化(上海)有限公司的資產負債表有多強?
We can see from the most recent balance sheet that Kinco Automation (Shanghai)Ltd had liabilities of CN¥143.5m falling due within a year, and liabilities of CN¥22.5m due beyond that. Offsetting this, it had CN¥343.7m in cash and CN¥151.2m in receivables that were due within 12 months. So it can boast CN¥329.0m more liquid assets than total liabilities.
我們可以從最新的資產負債表中看出,Kinco Automation(上海)有限公司的負債爲1.435億元人民幣,一年後到期的負債爲2,250萬元人民幣。與此相抵消的是,它有3.437億元的現金和1.512億元人民幣的應收賬款將在12個月內到期。因此,它可以擁有比3.29億元多出3.29億元人民幣的流動資產 總 負債。
This short term liquidity is a sign that Kinco Automation (Shanghai)Ltd could probably pay off its debt with ease, as its balance sheet is far from stretched. Simply put, the fact that Kinco Automation (Shanghai)Ltd has more cash than debt is arguably a good indication that it can manage its debt safely.
這種短期流動性表明,Kinco Automation(上海)有限公司可能會輕鬆還清債務,因爲其資產負債表遠未緊張。簡而言之,Kinco Automation(上海)有限公司的現金多於債務這一事實可以說是一個很好的跡象,表明它可以安全地管理債務。
In fact Kinco Automation (Shanghai)Ltd's saving grace is its low debt levels, because its EBIT has tanked 46% in the last twelve months. When a company sees its earnings tank, it can sometimes find its relationships with its lenders turn sour. When analysing debt levels, the balance sheet is the obvious place to start. But you can't view debt in total isolation; since Kinco Automation (Shanghai)Ltd will need earnings to service that debt. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.
實際上,金科自動化(上海)有限公司的救命之處在於其低債務水平,因爲其息稅前利潤在過去十二個月中下降了46%。當一家公司看到盈利下降時,它有時會發現與貸款機構的關係惡化。在分析債務水平時,資產負債表是顯而易見的起點。但是你不能完全孤立地看待債務;因爲金科自動化(上海)有限公司需要收益來償還債務。因此,如果你想進一步了解其收益,可能值得看看這張長期收益趨勢圖。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. Kinco Automation (Shanghai)Ltd may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. Over the most recent three years, Kinco Automation (Shanghai)Ltd recorded free cash flow worth 66% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This free cash flow puts the company in a good position to pay down debt, when appropriate.
最後,企業需要自由現金流來償還債務;會計利潤根本無法減少債務。Kinco Automation(上海)有限公司的資產負債表上可能有淨現金,但看看該企業如何將其利息稅前收益(EBIT)轉換爲自由現金流仍然很有趣,因爲這將影響其對債務的需求和管理能力。在最近三年中,Kinco Automation(上海)有限公司錄得的自由現金流佔其息稅前利潤的66%,鑑於自由現金流不包括利息和稅收,這幾乎是正常的。這種自由現金流使公司處於有利地位,可以在適當的時候償還債務。
Summing Up
總結
While we empathize with investors who find debt concerning, you should keep in mind that Kinco Automation (Shanghai)Ltd has net cash of CN¥303.7m, as well as more liquid assets than liabilities. The cherry on top was that in converted 66% of that EBIT to free cash flow, bringing in CN¥36m. So we don't have any problem with Kinco Automation (Shanghai)Ltd's use of debt. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. We've identified 3 warning signs with Kinco Automation (Shanghai)Ltd (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.
雖然我們同情那些認爲債務令人擔憂的投資者,但您應該記住,Kinco Automation(上海)有限公司的淨現金爲3.037億元人民幣,流動資產也多於負債。最重要的是,它將息稅前利潤的66%轉換爲自由現金流,帶來了3600萬元人民幣的收入。因此,我們對Kinco Automation(上海)有限公司的債務使用沒有任何問題。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。但是,並非所有的投資風險都存在於資產負債表中,遠非如此。我們已經向Kinco Automation(上海)有限公司確定了3個警告信號(至少有1個不容忽視),了解它們應該是您投資過程的一部分。
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。