Is Focuslight Technologies (SHSE:688167) Using Too Much Debt?
Is Focuslight Technologies (SHSE:688167) Using Too Much Debt?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We note that Focuslight Technologies Inc (SHSE:688167) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?
戴維·伊本說得好,“波動性不是我們關心的風險。我們關心的是避免永久資本損失。”因此,聰明的投資者知道,債務通常與破產有關,是評估公司風險的非常重要的因素。我們注意到Focuslight Technologies Inc (SHSE:688167)的負債表上確實有債務,但更重要的問題是:這些債務會帶來多大的風險?
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. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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. When we think about a company's use of debt, we first look at cash and debt together.
債務是幫助企業增長的工具,但如果一個企業無力償還它的債權人,那麼它就存在於債權人的憐憫之中。在最糟糕的情況下,公司如果無法償還其債權人,就可能破產。然而,更常見(但仍然痛苦)的情況是,它必須以低價籌集新的股權資本,從而永久稀釋股東的所有權。然而,通過取代稀釋,債務可以成爲一個非常好的工具,爲需要資本以高回報率投資於增長的企業提供服務。當我們考慮一家公司使用債務的情況時,我們首先查看現金和債務。
How Much Debt Does Focuslight Technologies Carry?
Focuslight Technologies的負債有多重?
You can click the graphic below for the historical numbers, but it shows that as of March 2024 Focuslight Technologies had CN¥389.5m of debt, an increase on CN¥71.2m, over one year. However, it does have CN¥1.28b in cash offsetting this, leading to net cash of CN¥885.9m.
你可以點擊下面的圖表查看歷史數據,但它顯示截至2024年3月,Focuslight Technologies有3.895億人民幣的債務,一年內增加了7.12億人民幣。但是,它還有12.8億元人民幣的現金抵消這些債務,因此淨現金爲8.859億元人民幣。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240525/0-2ee8dcbda8ada0c8639afc2c8726ef12-0-8b44313b612867d2adab69fd158e01b0.png/big)
How Strong Is Focuslight Technologies' Balance Sheet?
Focuslight Technologies的資產負債表有多強?
According to the last reported balance sheet, Focuslight Technologies had liabilities of CN¥144.9m due within 12 months, and liabilities of CN¥487.8m due beyond 12 months. On the other hand, it had cash of CN¥1.28b and CN¥222.2m worth of receivables due within a year. So it actually has CN¥864.9m more liquid assets than total liabilities.
根據最後公佈的資產負債表,Focuslight Technologies在12個月內有1.449億元人民幣的負債,在12個月後有4.878億元人民幣的負債。另一方面,它有12.8億元人民幣的現金和2.222億元人民幣的應收賬款。因此,它實際上有8.649億元人民幣比總負債還多出了更多的流動資產。
This surplus suggests that Focuslight Technologies is using debt in a way that is appears to be both safe and conservative. Given it has easily adequate short term liquidity, we don't think it will have any issues with its lenders. Succinctly put, Focuslight Technologies boasts net cash, so it's fair to say it does not have a heavy debt load!
這份多餘表明Focuslight Technologies在使用債務的方式上顯然是安全和保守的。考慮到它擁有足夠的短期流動性,我們認爲它不會遇到任何與債權人的問題。簡要地說,Focuslight Technologies擁有淨現金,因此可以說它沒有太大的負債負擔!
In addition to that, we're happy to report that Focuslight Technologies has boosted its EBIT by 60%, thus reducing the spectre of future debt repayments. 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 Focuslight Technologies can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
此外,我們很高興報告Focuslight Technologies已將其EBIT提高了60%,從而減少了未來償還債務的風險。毫無疑問,我們從資產負債表上了解到的關於債務的信息最多。但是,最終業務的未來盈利能力將決定Focuslight Technologies是否能夠隨着時間的推移加強其資產負債表。因此,如果您想了解專業人士的想法,您可能會發現這份關於分析師盈利預測的免費報告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. While Focuslight Technologies has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. Over the last three years, Focuslight Technologies saw substantial negative free cash flow, in total. 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.
但我們最後考慮的也很重要,因爲公司無法用紙面利潤支付債務,而需要現金。雖然Focuslight Technologies的資產負債表上有淨現金,但仍值得研究其將利息和稅前利潤(EBIT)轉換爲自由現金流的能力,以幫助我們了解它正在以多快的速度建立(或侵蝕)現金餘額。過去三年,Focuslight Technologies的自由現金流總體上呈現出相當大的負數。儘管投資者無疑希望該情況逆轉,但它顯然意味着其使用債務的風險更大。
Summing Up
總之
While it is always sensible to investigate a company's debt, in this case Focuslight Technologies has CN¥885.9m in net cash and a decent-looking balance sheet. And we liked the look of last year's 60% year-on-year EBIT growth. So is Focuslight Technologies's debt a risk? It doesn't seem so to us. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. Be aware that Focuslight Technologies is showing 1 warning sign in our investment analysis , you should know about...
雖然調查公司的債務是明智的,但在這種情況下,Focuslight Technologies淨現金爲88590萬人民幣,資產負債表看起來不錯,我們也喜歡去年60%的年增EBIt。那麼Focuslight Technologies的負債風險呢?在我們看來似乎不是這樣。資產負債表顯然是分析債務的重點區域。然而,並非所有的投資風險都存在於資產負債表中——遠非如此。請注意,我們的投資分析顯示Focuslight Technologies存在1個警告信號,你應該知道......
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
如果您有興趣投資能夠在不負債的情況下增長利潤的企業,請查看這份免費列表,其中列出了在資產負債表上擁有淨現金的成長型企業。
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