Xiangyang Changyuandonggu Industry (SHSE:603950) Has A Pretty Healthy Balance Sheet
Xiangyang Changyuandonggu Industry (SHSE:603950) Has A Pretty Healthy Balance Sheet
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Xiangyang Changyuandonggu Industry Co., Ltd. (SHSE:603950) does carry debt. But the more important question is: how much risk is that debt creating?
作爲投資者,有人認爲波動性才是風險考慮的最佳方法,但禾倫•巴菲特曾說過:“波動性遠非風險的代名詞。”當你考慮一個公司的風險時,自然要考慮它的資產負債表,因爲債務往往會伴隨企業破產。重要的是,項陽長源東谷實業股份有限公司(SHSE:603950)的確有債務。但更重要的問題是:這些債務造成了多大的風險?
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. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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, debt can be an important tool in businesses, particularly capital heavy businesses. 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債權人,那麼它就處於債權人的處置下。在最壞的情況下,如果企業無法支付其債權人,將導致企業破產。然而,一個更頻繁(但仍然代價高昂)的情況是,一個公司必須以極低的價格發行股票,以永久性地稀釋股東,只爲支持其資產負債表。當然,債務可以是企業的一種重要工具,尤其是對資本密集型企業來說。當我們思考企業的債務使用時,首先要考慮現金和債務。
How Much Debt Does Xiangyang Changyuandonggu Industry Carry?
項陽長源東谷實業股份有限公司有多少債務?
As you can see below, Xiangyang Changyuandonggu Industry had CN¥776.5m of debt at March 2024, down from CN¥961.6m a year prior. However, it does have CN¥554.5m in cash offsetting this, leading to net debt of about CN¥222.1m.
正如下面所示,項陽長源東谷實業股份有限公司於2024年3月有CN¥77650萬的債務,較去年的CN¥96160萬有所下降。然而,它有CN¥55450萬的現金抵消了這個債務,從而導致淨債務約爲CN¥22210萬。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240606/0-6ed048a3f2eba29550738482ee0437ff-0-9d3eb12f0efda32286a873ff445c5876.png/big)
How Strong Is Xiangyang Changyuandonggu Industry's Balance Sheet?
項陽長源東谷實業股份有限公司的資產負債表有多強?
Zooming in on the latest balance sheet data, we can see that Xiangyang Changyuandonggu Industry had liabilities of CN¥1.16b due within 12 months and liabilities of CN¥1.02b due beyond that. Offsetting these obligations, it had cash of CN¥554.5m as well as receivables valued at CN¥813.2m due within 12 months. So its liabilities total CN¥820.1m more than the combination of its cash and short-term receivables.
當我們仔細觀察最新的資產負債表數據時,我們可以看到項陽長源東谷實業股份有限公司有CN¥11.6億的逾期負債在12個月內到期,有CN¥10.2億的逾期負債超過12個月到期。抵消這些義務,它擁有CN¥55450萬的現金以及CN¥81320萬的應收賬款在12個月內到期。所以它的負債總額比其現金和短期應收賬款的組合多了CN¥82010萬。
Since publicly traded Xiangyang Changyuandonggu Industry shares are worth a total of CN¥4.60b, it seems unlikely that this level of liabilities would be a major threat. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.
由於項陽長源東谷實業股份有限公司上市股份總價值爲CN¥46億,因此看起來這種負債水平不太可能構成重大威脅。但話雖如此,很明顯,我們應該繼續監視其資產負債表,以防惡化。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
我們使用兩個主要的比率來衡量債務水平與收益的關係。一個是淨債務除以利息、稅、折舊和攤銷前利潤(EBITDA),另一個是它的利息費用與利息和稅前利潤(EBIT)相比的倍數(或其利息覆蓋率)。這樣,我們考慮了債務的絕對量以及所支付的利率。
Xiangyang Changyuandonggu Industry has a low debt to EBITDA ratio of only 0.54. But the really cool thing is that it actually managed to receive more interest than it paid, over the last year. So it's fair to say it can handle debt like a hotshot teppanyaki chef handles cooking. Better yet, Xiangyang Changyuandonggu Industry grew its EBIT by 161% last year, which is an impressive improvement. That boost will make it even easier to pay down debt going forward. There's no doubt that we learn most about debt from the balance sheet. But it is Xiangyang Changyuandonggu Industry's earnings that will influence how the balance sheet holds up in the future. 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.
項陽長源東谷實業股份有限公司的負債資產比僅爲0.54。但真正的好事是,它實際上在過去的一年中獲得了比它支付的更多的利息。所以可以說,它可以處理像日本鐵板燒一樣處理債務。更好的是,項陽長源東谷實業股份有限公司去年的EBIT增長了161%,這是一個令人印象深刻的進步。這種推動將使其更容易在今後償還債務。毫無疑問,我們從資產負債表上了解債務最多。但正是項陽長源東谷實業股份有限公司的盈利將影響未來資產負債表的情況。因此,如果你想了解更多有關它的收益的信息,不妨查看一下其長期盈利趨勢圖。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Xiangyang Changyuandonggu Industry burned a lot of cash. 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.
最後,雖然稅務機構可能喜歡會計利潤,但債權人只接受冰冷的現金。因此,我們顯然需要查看EBIT是否導致相應的自由現金流。在過去的三年中,項陽長源東谷實業股份有限公司消耗了大量現金。雖然投資者無疑希望在不久的將來出現局面的逆轉,但這顯然意味着它使用債務的風險更大。
Our View
我們的觀點
Xiangyang Changyuandonggu Industry's interest cover suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. But the stark truth is that we are concerned by its conversion of EBIT to free cash flow. Looking at all the aforementioned factors together, it strikes us that Xiangyang Changyuandonggu Industry can handle its debt fairly comfortably. Of course, while this leverage can enhance returns on equity, it does bring more risk, so it's worth keeping an eye on this one. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. We've identified 3 warning signs with Xiangyang Changyuandonggu Industry , and understanding them should be part of your investment process.
項陽長源東谷實業股份有限公司的利息覆蓋倍數表明它處理債務的能力與C羅對陣14歲守門員的進球一樣容易。但骨子裏,我們擔心它的EBIT轉換爲自由現金流。綜合考慮所有上述因素,我們認爲項陽長源東谷實業股份有限公司能夠相當舒適地處理其債務。當然,雖然這種槓桿可以增加股本回報率,但也帶來了更大的風險,因此值得關注這一點。毫無疑問,我們從資產負債表上得知有關債務的最多信息。但是,每個公司都可能包含存在於資產負債表以外的風險。我們找出了項陽長源東谷實業股份有限公司的3個警告信號,並了解它們應該是你投資流程的一部分。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果您在所有這些工作之後,更感興趣於擁有堅實資產負債表的快速發展公司,請立即查看我們的淨現金成長股列表。
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