Is HUAYU Automotive Systems (SHSE:600741) Using Too Much Debt?
Is HUAYU Automotive Systems (SHSE:600741) Using Too Much Debt?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' 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, HUAYU Automotive Systems Company Limited (SHSE:600741) does carry debt. But the more important question is: how much risk is that debt creating?
傳奇基金經理李錄(Charile Munger支持的人)曾說過:“最大的投資風險不是價格的波動,而是是否會遭受資本的永久損失。” 當您審查一個公司的風險時,考慮該公司的資產負債表是很自然的考慮,因爲當業務倒閉時,通常涉及到債務。 重要的是,華域汽車系統企業股份有限公司(SHSE:600741)確實存在債務。 但更重要的問題是:這些債務製造了多少風險?
When Is Debt A Problem?
什麼時候負債才是一個問題?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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, debt can be an important tool in businesses, particularly capital heavy businesses. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
通常情況下,當一家公司無法輕鬆還清債務時,債務才會成爲真正的問題,無論是通過籌集資本還是利用自身的現金流暢通。 最終,如果公司無法履行償還債務的法律義務,股東可能會一無所有。然而,一個更常見(但仍然痛苦的)情況是在低價上募集新的股本資本,從而永久稀釋股東。 當然,債務可以成爲企業中的重要工具,特別是資本密集型企業。 在考慮企業使用的債務量時,首先要做的是查看其現金和債務的總和。
How Much Debt Does HUAYU Automotive Systems Carry?
華域汽車系統承擔了多少債務?
You can click the graphic below for the historical numbers, but it shows that as of March 2024 HUAYU Automotive Systems had CN¥16.7b of debt, an increase on CN¥14.5b, over one year. But it also has CN¥41.5b in cash to offset that, meaning it has CN¥24.7b net cash.
您可以點擊下面的圖形查看歷史數字,但它顯示截至2024年3月華域汽車系統債務總額爲人民幣16.7億元,比去年的人民幣14.5億元增加。 但它還有人民幣41.5億元的現金來抵銷,這意味着它有人民幣24.7億元的淨現金。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240621/0-25d6fc67d210386706ef9e6bbf935cab-0-6a948cff5fa14c747967890b21fd03ad.png/big)
How Strong Is HUAYU Automotive Systems' Balance Sheet?
華域汽車系統的資產負債表有多強?
We can see from the most recent balance sheet that HUAYU Automotive Systems had liabilities of CN¥101.6b falling due within a year, and liabilities of CN¥9.98b due beyond that. On the other hand, it had cash of CN¥41.5b and CN¥48.8b worth of receivables due within a year. So its liabilities total CN¥21.3b more than the combination of its cash and short-term receivables.
我們可以看到最近的資產負債表顯示,華域汽車系統有人民幣101.6億元的負債到期,一年內到期,還有人民幣9.98億元的負債到期。另一方面,它現金爲人民幣41.5億元,一年內的應收賬款爲人民幣48.8億元。因此,其負債總額比其現金和短期應收賬款的總和高出人民幣21.3億元。雖然這可能看起來很多,但華域汽車系統的市值爲人民幣50.5億元,因此如果需要,可能可以通過籌集資本來加強其資產負債表。但顯然,我們應該仔細審查它是否可以在不稀釋股東的情況下管理債務。儘管它的負債明顯,華域汽車系統擁有淨現金,因此可以說它沒有沉重的負債負擔!
While this might seem like a lot, it is not so bad since HUAYU Automotive Systems has a market capitalization of CN¥50.5b, and so it could probably strengthen its balance sheet by raising capital if it needed to. But it's clear that we should definitely closely examine whether it can manage its debt without dilution. Despite its noteworthy liabilities, HUAYU Automotive Systems boasts net cash, so it's fair to say it does not have a heavy debt load!
好消息是,華域汽車系統過去十二個月的息稅前利潤(EBIT)增長了2.4%,這應該緩解對債務償還的擔憂。毫無疑問,我們對債務的了解大部分來自資產負債表。 但最重要的是,未來的盈利,而不是其他任何因素,將決定華域汽車系統維持健康的資產負債表的能力。因此,如果您想了解專業人士的意見,可以看看分析師利潤預測的免費報告,可能會發現它很有趣。
The good news is that HUAYU Automotive Systems has increased its EBIT by 2.4% over twelve months, which should ease any concerns about debt repayment. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine HUAYU Automotive Systems's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
最後,公司只能用冰冷的現金而不是會計利潤償還債務。華域汽車系統可能在資產負債表中有淨現金,但是查看業務如何將息稅前利潤(EBIT)轉換爲自由現金流是很有趣的,因爲這將影響其管理預算和債務能力。在過去的三年中,華域汽車系統錄得自由現金流高達81%的息稅前利潤,這比我們通常的預期要強。如果需要償還債務,它的位置就很好了。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. HUAYU Automotive Systems 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, HUAYU Automotive Systems recorded free cash flow worth a fulsome 81% of its EBIT, which is stronger than we'd usually expect. That positions it well to pay down debt if desirable to do so.
雖然華域汽車系統的負債比流動資產多,但它也擁有人民幣24.7億元的淨現金。並且,其7.1億元的自由現金流令人印象深刻,相當於其息稅前利潤的81%。因此,華域汽車系統使用負債沒有任何問題。當您分析債務時,資產負債表顯然是要關注的領域。但是,並非所有的投資風險都存在於資產負債表上,我們已經確定了華域汽車系統的兩個警示信號(至少有一個不符合我們的期望),了解它們應該成爲您的投資過程的一部分。
Summing Up
總之
While HUAYU Automotive Systems does have more liabilities than liquid assets, it also has net cash of CN¥24.7b. And it impressed us with free cash flow of CN¥7.1b, being 81% of its EBIT. So we don't have any problem with HUAYU Automotive Systems's use of debt. 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. We've identified 2 warning signs with HUAYU Automotive Systems (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.
雖然華域汽車系統的負債比流動資產多,但它也擁有人民幣24.7億元的淨現金。並且,其7.1億元的自由現金流令人印象深刻,相當於其息稅前利潤的81%。因此,華域汽車系統使用負債沒有任何問題。當您分析債務時,資產負債表顯然是要關注的領域。但是,並非所有的投資風險都存在於資產負債表上,我們已經確定了華域汽車系統的兩個警示信號(至少有一個不符合我們的期望),了解它們應該成爲您的投資過程的一部分。
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負債負擔的股票的投資者,則今天就可以發現我們的獨家淨現金增長股清單。
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對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或電郵 editorial-team (at) simplywallst.com。
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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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