Does Center International GroupLtd (SHSE:603098) Have A Healthy Balance Sheet?
Does Center International GroupLtd (SHSE:603098) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' 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. Importantly, Center International Group Co.,Ltd. (SHSE:603098) does carry debt. But is this debt a concern to shareholders?
霍華德·馬克斯(Howard Marks)說得很好,與其擔心股價波動,‘我擔心的是永久性損失的可能性……我認識的每一個實際投資者都會擔心這個。’看來聰明的投資者知道,通常涉及破產的債務是評估企業風險時非常重要的因素。 重要的是,森特股份股份有限公司(SHSE:603098)確實負債。但這筆債務是否會讓股東擔憂呢?
When Is Debt Dangerous?
債務何時有危險?
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. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest 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.
債務是幫助企業成長的一種工具,但是如果企業無法償還其債權人的錢,那麼它就完全受制於債權人。最終,如果公司無法履行其法定債務還款義務,股東可能面臨空手而回的風險。然而,更頻繁的情況是,公司必須以折價的價格發行股票,永久稀釋股東權益,以支撐其資產負債表。當然,債務的好處在於,它通常代表着廉價的資本,特別是當它取代具有高回報率再投資能力的公司的稀釋時。在考慮企業使用多少債務時,首先要做的是看看它的現金和債務狀況。
What Is Center International GroupLtd's Debt?
森特股份股份有限公司的債務情況如何?
The image below, which you can click on for greater detail, shows that Center International GroupLtd had debt of CN¥961.3m at the end of March 2024, a reduction from CN¥1.40b over a year. But on the other hand it also has CN¥1.06b in cash, leading to a CN¥99.8m net cash position.
以下圖片,您可以點擊獲取更多細節,顯示森特股份股份有限公司於2024年3月底的債務爲9.6130億元人民幣,較去年同期下降了14億元人民幣。 另一方面,它也擁有10.6億元人民幣的現金,導致淨現金爲9980萬元人民幣。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240531/0-5969a7e940f76362f3cbe32cee985b97-0-6605266b637d19c0ece98fff02171027.png/big)
How Strong Is Center International GroupLtd's Balance Sheet?
森特股份股份有限公司的資產負債表如何?
Zooming in on the latest balance sheet data, we can see that Center International GroupLtd had liabilities of CN¥3.05b due within 12 months and liabilities of CN¥258.0m due beyond that. Offsetting these obligations, it had cash of CN¥1.06b as well as receivables valued at CN¥3.69b due within 12 months. So it can boast CN¥1.44b more liquid assets than total liabilities.
放大最新的資產負債表數據,我們可以看到,森特股份股份有限公司在12個月內有305億元人民幣的負債,超過該期限後另有2580萬元人民幣的負債。 抵消這些負債,它擁有10.6億元人民幣的現金,以及36.9億元人民幣的應收賬款在12個月內到期。 因此,它可以自誇擁有14.4億元人民幣的流動資產,比其他所有負債多。總負債。
This excess liquidity suggests that Center International GroupLtd is taking a careful approach to debt. Given it has easily adequate short term liquidity, we don't think it will have any issues with its lenders. Simply put, the fact that Center International GroupLtd has more cash than debt is arguably a good indication that it can manage its debt safely.
這種過剩的流動性表明森特股份股份有限公司正在謹慎對待債務。 鑑於它具有足夠的短期流動性,我們認爲它不會遇到與債權人的任何問題。 簡單地說,森特股份股份有限公司有更多現金而不是債務的事實,可以說是能夠安全地管理其債務的良好指標。
Also relevant is that Center International GroupLtd has grown its EBIT by a very respectable 23% in the last year, thus enhancing its ability to pay down debt. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Center International GroupLtd can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
同樣重要的是,森特股份股份有限公司在過去一年中使其EBIT增長了23%,從而增強了其償還債務的能力。 在分析債務時,資產負債表顯然是要關注的領域。 但最終,企業未來的盈利能力將決定森特股份股份有限公司能否逐漸加強其資產負債表。 因此,如果您專注於未來,可以查看這份免費報告,其中顯示了分析師的利潤預測。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. Center International GroupLtd 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 last three years, Center International GroupLtd actually produced more free cash flow than EBIT. There's nothing better than incoming cash when it comes to staying in your lenders' good graces.
最後,企業需要自由現金流來償還債務;會計利潤並不太夠。森特股份股份有限公司可能有淨現金負債表,但是看看企業將其利潤前利息和稅前收益(EBIT)轉化爲自由現金流的能力,是很有趣的,因爲這將影響它的債務需求和債務管理能力。在過去的三年中,森特股份股份有限公司實際上比EBIT產生了更多自由現金流。對於保持與貸款人的良好關係來說,沒有什麼比流入的現金更好的了。
Summing Up
總之
While it is always sensible to investigate a company's debt, in this case Center International GroupLtd has CN¥99.8m in net cash and a decent-looking balance sheet. And it impressed us with free cash flow of CN¥268m, being 156% of its EBIT. So we don't think Center International GroupLtd's use of debt is risky. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. For example, we've discovered 1 warning sign for Center International GroupLtd that you should be aware of before investing here.
雖然調查一家公司的債務總是明智的,但在這種情況下,森特股份股份有限公司有9980萬元的淨現金和一份看上去不錯的資產負債表。它讓我們印象深刻的是,它的自由現金流爲26800萬元人民幣,是其EBIT的156%。因此,我們認爲森特股份股份有限公司的債務使用並不具有風險。 在分析債務水平時,資產負債表顯然是要開始的地方。 但最終,除了資產負債表以外,每個公司都可能存在風險。例如,我們發現森特股份股份有限公司有1個警告標誌,您在投資之前應該注意。
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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