Here's Why Henry Schein (NASDAQ:HSIC) Has A Meaningful Debt Burden
Here's Why Henry Schein (NASDAQ:HSIC) Has A Meaningful Debt Burden
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.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Henry Schein, Inc. (NASDAQ:HSIC) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?
David Iben說得好,“波動性不是我們關心的風險。我們關心的是避免資本的永久損失。 ”當我們考慮一個公司有多大的風險時,我們總是喜歡關注它的負債使用情況,因爲負債過載會導致破產。我們注意到漢瑞祥公司(納斯達克股票代碼:HSIC)的資產負債表上有負債。但更重要的問題是:這筆債務產生了多大的風險?
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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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. 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 step when considering a company's debt levels is to consider its cash and debt together.
債務是幫助企業增長的工具,但如果企業無法償還貸款,則只存在於債權人的掌握之中。資本主義的一部分是“創意銷燬”過程,其中失敗的企業被銀行家無情清算。然而,更頻繁(但仍然成本高昂)的情況是公司必須以低廉的價格發行股票,永久稀釋股東權益,僅僅爲了支持其資產負債表。然而,在取代稀釋的情況下,債務可以成爲一種非常有利的工具,可以幫助企業以高回報率投資增長所需的資本。在考慮公司的債務水平時,第一步是考慮現金和債務的總和。
What Is Henry Schein's Debt?
何爲漢瑞祥的債務?
As you can see below, at the end of March 2024, Henry Schein had US$2.37b of debt, up from US$1.30b a year ago. Click the image for more detail. However, it does have US$159.0m in cash offsetting this, leading to net debt of about US$2.21b.
正如下面可以看到的那樣,在2024年3月底,漢瑞祥的債務爲23.7億美元,比一年前的13億美元增加了。點擊圖片以獲取更多細節。不過,它確實有1.59億美元的現金抵消了這一點,導致淨債務約爲21.1億美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240610/0-20c7b486bd492bc85fede67e17568eb8-0-ceee76ec6564c858be34f722156556fd.png/big)
A Look At Henry Schein's Liabilities
看一下漢瑞祥的負債狀況
Zooming in on the latest balance sheet data, we can see that Henry Schein had liabilities of US$2.33b due within 12 months and liabilities of US$2.78b due beyond that. On the other hand, it had cash of US$159.0m and US$1.64b worth of receivables due within a year. So it has liabilities totalling US$3.31b more than its cash and near-term receivables, combined.
放大到最新的資產負債表數據,我們可以看到漢瑞祥有23.3億美元到期的負債,超過12個月到期的負債爲27.8億美元。另一方面,它在一年內有1.59億美元的現金和1.64億美元的應收賬款。所以,其負債合計爲33.1億美元,超過其現金和短期應收賬款合計。
This deficit isn't so bad because Henry Schein is worth US$8.77b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. However, it is still worthwhile taking a close look at its ability to pay off debt.
這個赤字並不太嚴重,因爲漢瑞祥市值爲87.7億美元,因此如果需要,可能可以籌集足夠的資金來支持其資產負債表。但是,仔細考慮其償還債務的能力仍然很有價值。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
我們通過查看淨債務與利息、稅、折舊和攤銷前收益(EBITDA)之比以及計算其利息支出由收益前利息和稅(EBIT)覆蓋的程度來度量一家公司的債務負載相對於其收益能力的程度。此方法的優點在於我們同時考慮了債務的絕對量(以淨債務爲EBITDA)以及與該債務相關的實際利息支出(以其利息覆蓋倍數計算)。
With a debt to EBITDA ratio of 2.4, Henry Schein uses debt artfully but responsibly. And the fact that its trailing twelve months of EBIT was 7.9 times its interest expenses harmonizes with that theme. Shareholders should be aware that Henry Schein's EBIT was down 21% last year. If that decline continues then paying off debt will be harder than selling foie gras at a vegan convention. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Henry Schein'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.
漢瑞祥在債務與EBITDA比爲2.4的情況下創造性而負責地使用債務。其最近12個月的EBIT爲其利息支出的7.9倍,與此主題協調一致。股東應該知道漢瑞祥的EBIT去年下降了21%。如果這種下降持續下去,那麼償還債務將比在素食者大會上銷售鵝肝更加困難。當您分析債務時,明顯應該關注資產負債表。但最終是未來的收益,而不是其他任何東西,將決定漢瑞祥維持健康的資產負債表的能力。因此,如果您關注未來,可以查看這份顯示分析師利潤預測的免費報告。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs 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, Henry Schein produced sturdy free cash flow equating to 64% of its EBIT, about what we'd expect. This free cash flow puts the company in a good position to pay down debt, when appropriate.
最後考慮的是稍有不同,因爲公司無法用紙質利潤支付債務;它需要真正的現金。因此,我們顯然需要查看那個息稅前利潤是否帶來了相應的自由現金流量。在過去的三年中,漢瑞祥產生了穩健的自由現金流量,相當於其息稅前利潤的64%,與我們的預期相當。當適當時,這種自由現金流量使公司處於良好的償還債務的位置。
Our View
我們的觀點
Henry Schein's struggle to grow its EBIT had us second guessing its balance sheet strength, but the other data-points we considered were relatively redeeming. But on the bright side, its ability to to convert EBIT to free cash flow isn't too shabby at all. We should also note that Healthcare industry companies like Henry Schein commonly do use debt without problems. Looking at all the angles mentioned above, it does seem to us that Henry Schein is a somewhat risky investment as a result of its debt. That's not necessarily a bad thing, since leverage can boost returns on equity, but it is something to be aware of. 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. To that end, you should be aware of the 2 warning signs we've spotted with Henry Schein .
漢瑞祥努力增加其EBIT使我們對其資產負債表強度感到疑慮,但我們考慮的其他數據點相對可取。但是好的方面是,其將EBIT轉換爲自由現金流的能力不錯。我們還應該注意,像漢瑞祥這樣的醫療保健行業公司通常會毫無問題地使用債務。從上述所有角度來看,對我們來說,由於其債務,漢瑞祥似乎是一項相對有風險的投資。這並不一定是壞事,因爲槓桿可以提高股本回報率,但這是需要注意的事項。當分析債務水平時,資產負債表顯然是開始的明顯位置。但最終,每個公司都可能存在超出資產負債表範圍的風險。爲此,您應該了解我們發現的漢瑞祥的2個警告標誌。
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
當然,如果您是那種喜歡購買沒有債務負擔的股票的投資者,那麼不要猶豫,立即發現我們獨家的淨現金增長股票列表。
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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。