Oshkosh (NYSE:OSK) Has A Pretty Healthy Balance Sheet
Oshkosh (NYSE:OSK) 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. We note that Oshkosh Corporation (NYSE:OSK) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?
作爲投資者,有些人認爲波動性是評估風險的最好方式,而禾倫·巴菲特曾說過:“波動性與風險遠非同義詞。” 當你考慮一個公司的風險時,自然會考慮其資產負債表,因爲當企業崩潰時通常涉及到債務。 我們注意到Oshkosh公司(紐交所:OSK)的資產負債表上確實有債務。 但更重要的問題是:這些債務造成了多少風險?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. 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. 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. When we examine debt levels, we first consider both cash and debt levels, together.
當企業無法輕鬆地通過自由現金流或以有吸引力的價格籌集資本來滿足這些義務時,債務和其他負債將爲企業帶來風險。資本主義的核心是“創造性的破壞”過程,失敗的企業將被銀行家無情地清算。然而,一種更常見(但仍然痛苦的)情況是,公司必須以低價發行新的股權資本,從而永久性地稀釋股東。當然,債務的好處是它常常代表着廉價的資本,尤其是當它取代具有以高回報率再投資能力的公司時,可以提高價值。 當我們審查債務水平時,我們首先考慮現金和債務水平。
How Much Debt Does Oshkosh Carry?
Oshkosh承擔了多少債務?
As you can see below, at the end of March 2024, Oshkosh had US$1.24b of debt, up from US$597.3m a year ago. Click the image for more detail. However, because it has a cash reserve of US$69.9m, its net debt is less, at about US$1.17b.
正如下圖所示,在2024年3月底,Oshkosh的債務總額爲12.4億美元,比一年前的5.97億美元增加了一倍多。 點擊圖像以了解更多詳情。 但是,由於它擁有6990萬美元的現金儲備,其淨債務只有約11.7億美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240609/0-c8305ad337726bada1cfe3f6f5cad068-0-e8088bd1e79526cecd86f6d19cb44ca0.png/big)
How Strong Is Oshkosh's Balance Sheet?
Oshkosh的資產負債表有多強?
According to the last reported balance sheet, Oshkosh had liabilities of US$3.32b due within 12 months, and liabilities of US$2.33b due beyond 12 months. Offsetting these obligations, it had cash of US$69.9m as well as receivables valued at US$2.36b due within 12 months. So its liabilities total US$3.21b more than the combination of its cash and short-term receivables.
根據最近報告的資產負債表,Oshkosh有33.2億美元的負債在12個月內到期,23.3億美元的負債在12個月後到期。 抵消這些義務,它持有價值23.6億美元的應收賬款和6990萬美元的現金。 所以它的負債總額比其現金和短期應收賬款的組合多出31億2100萬美元。
Oshkosh has a market capitalization of US$7.19b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.
Oshkosh的市值爲71.9億美元,因此,如果需要,它很可能會籌集資金來改善其資產負債表。 但是,我們確實想要保持警惕,觀察其債務是否帶來了過多的風險。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
爲了對公司的債務相對於其收益進行規模適應,我們計算其淨債務與利息、稅、折舊和攤銷前收益(EBITDA)之比及其稅前收益(EBIT)與利息支出之比(利息保障倍數)。因此,我們既考慮到不包括折舊和攤銷費用在內的收益,又包括折舊和攤銷費用的收益相對於債務。
Oshkosh has a low net debt to EBITDA ratio of only 1.0. And its EBIT covers its interest expense a whopping 14.6 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse. Even more impressive was the fact that Oshkosh grew its EBIT by 105% over twelve months. If maintained that growth will make the debt even more manageable in the years ahead. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Oshkosh's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Oshkosh的淨債務與EBITDA比率僅爲1.0。 其利息支出的利潤涵蓋了14.6倍。 因此,你可以認爲它面臨的風險不比大象面臨的風險小。 更令人印象深刻的是,Oshkosh在12個月內將其EBIT增長了105%。 如果保持這種增長,這將使債務在未來的幾年內更易管理。 在分析債務水平時,資產負債表是開始的明顯地方。 但是,未來的收益,更多地取決於任何事情,都將決定Oshkosh保持健康資產負債表的能力。 因此,如果你關注未來,你可以查看此免費報告,其中顯示了分析師的利潤預測。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we always check how much of that EBIT is translated into free cash flow. Looking at the most recent three years, Oshkosh recorded free cash flow of 21% of its EBIT, which is weaker than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness.
最後,公司只能用冷硬現金而不是會計利潤來償還債務。 因此,我們始終要檢查其中多少EBIT被轉化爲自由現金流。 查看最近三年,Oshkosh記錄的自由現金流爲其EBIT的21%,這比我們預期的要弱。 這種弱的現金轉換使處理負債變得更加困難。
Our View
我們的觀點
Happily, Oshkosh's impressive interest cover implies it has the upper hand on its debt. But truth be told we feel its conversion of EBIT to free cash flow does undermine this impression a bit. Looking at all the aforementioned factors together, it strikes us that Oshkosh 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. For example Oshkosh has 2 warning signs (and 1 which is concerning) we think you should know about.
令人高興的是,Oshkosh令人印象深刻的利息覆蓋率意味着它在債務方面具有優勢。 但是說實話,我們認爲其將EBIT轉化爲自由現金流的能力會有點削弱這一印象。 綜合考慮所有上述因素,我們認爲Oshkosh可以相當舒適地處理其債務。 當然,雖然這種槓桿可以增強股本回報,但它確實帶來更多風險,因此值得密切關注。 毫無疑問,我們從資產負債表中了解到債務的最多。 但最終,每家公司都可能存在超出資產負債表的風險。 例如Oshkosh有2個警告信號(其中1個是令人關注的)我們認爲你應該知道。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
說到底,有時更容易關注那些甚至不需要債務的公司。讀者可以免費查看零淨債務增長股票列表,立即獲得。
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