Olaplex Holdings (NASDAQ:OLPX) Takes On Some Risk With Its Use Of Debt
Olaplex Holdings (NASDAQ:OLPX) Takes On Some Risk With Its Use Of 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.' 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, Olaplex Holdings, Inc. (NASDAQ:OLPX) does carry debt. But is this debt a concern to shareholders?
傳奇基金經理李璐(Charlie Munger支持)曾說過,“最大的投資風險不是價格波動,而是你是否會遭受資本的永久損失。” 因此,智能投資者知道債務 - 通常涉及破產 - 是評估公司風險的非常重要的因素。重要的是,Olaplex Holdings,Inc.(納斯達克:OLPX)確實負債。但是,這種負債對股東是否構成擔憂?
When Is Debt Dangerous?
債務何時有危險?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
債務可以幫助企業,直到企業無法用新資本或自由現金流償還債務。如果情況變得非常糟糕,貸款人可以控制企業。然而,通常情況下(但仍然昂貴)的情況是,公司必須以低廉的股價稀釋股東權益,以控制債務。當然,債務可以是企業中重要的工具,特別是在資本密集型企業中。在考慮公司的債務水平時的第一步是考慮其現金和債務總額。
What Is Olaplex Holdings's Debt?
Olaplex Holdings的債務是多少?
As you can see below, Olaplex Holdings had US$654.4m of debt, at March 2024, which is about the same as the year before. You can click the chart for greater detail. However, because it has a cash reserve of US$507.5m, its net debt is less, at about US$146.9m.
如下所示,截至2024年3月,Olaplex Holdings的債務爲6.544億美元,與去年同期大致相同。您可以單擊圖表以獲取更多詳細信息。但是,由於其有5.075億美元的現金儲備,其淨債務較小,約爲1.469億美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240625/0-3dd16bdb436d6ceb1eacf687473b811b-0-e35572d68db71de3dc60159da0a78b92.png/big)
How Strong Is Olaplex Holdings' Balance Sheet?
Olaplex Holdings的資產負債表有多強?
We can see from the most recent balance sheet that Olaplex Holdings had liabilities of US$59.7m falling due within a year, and liabilities of US$837.9m due beyond that. On the other hand, it had cash of US$507.5m and US$25.8m worth of receivables due within a year. So its liabilities total US$364.3m more than the combination of its cash and short-term receivables.
我們可以從最新的資產負債表中看到,Olaplex Holdings有59.7美元的負債在一年內到期,並且有837.9美元的負債到期。另一方面,它有5.075億美元的現金和2580萬美元的一年內應收賬款。因此,它的負債比其現金和短期應收賬款的組合多3.643億美元。
Olaplex Holdings has a market capitalization of US$1.16b, 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.
Olaplex Holdings的市值爲11.6億美元,因此如果需要,它可能非常有可能籌集資金來改善其資產負債表。但我們肯定要密切關注其債務是否帶來了太多風險。
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).
卡比海運的淨債務爲1.7倍EBITDA,這表明它很好地利用了債務。 同時,EBIT利息覆蓋(7.3倍)也證明卡比海運的利潤完全足以支付管理費和計息費。此外,卡比海運過去12個月EBIT增長了64%,這種增長將使其更容易處理其債務。通過財務報表,我們確信該公司對債務的運用是明智的。然而,確保公司未來的盈利能力才是最終關鍵,這將決定卡比海運能否逐漸加強其資產負債表。此外,自由現金流還將幫助我們檢查公司的出現的任何偏離預期的現金流。
Looking at its net debt to EBITDA of 0.97 and interest cover of 2.7 times, it seems to us that Olaplex Holdings is probably using debt in a pretty reasonable way. But the interest payments are certainly sufficient to have us thinking about how affordable its debt is. Shareholders should be aware that Olaplex Holdings's EBIT was down 65% last year. If that decline continues then paying off debt will be harder than selling foie gras at a vegan convention. 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 Olaplex Holdings'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.
從其淨債務與EBITDA的比率爲0.97和利息覆蓋率爲2.7倍來看,Olaplex Holdings似乎是以相當合理的方式使用債務。但利息付款肯定足以讓我們考慮其債務的可負擔性。股東應該知道,Olaplex Holdings的EBIT去年下降了65%。如果這種下降繼續下去,償還債務將比在素食主義者會議上賣鵝肝更難。毫無疑問,我們從資產負債表中得出的一切對於債務的認識最爲重要。但是,與任何事情相關的未來收入,而不是任何資料,將決定Olaplex Holdings維持健康資產負債表的能力。因此,如果您想知道專業人士的想法,則可能會發現分析師利潤預測的免費報告非常有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So we always check how much of that EBIT is translated into free cash flow. Over the last three years, Olaplex Holdings recorded free cash flow worth a fulsome 82% of its EBIT, which is stronger than we'd usually expect. That positions it well to pay down debt if desirable to do so.
但我們最後要考慮的也很重要,因爲公司無法用紙上利潤支付債務;它需要冷硬的現金。因此,我們總是檢查那些EBIT被轉化爲自由現金流的公司的份額。在過去三年中,Olaplex Holdings記錄的自由現金流價值爲其EBIT的82%,這比我們通常預期的要強。如果需要,這使其有能力償還債務。
Our View
我們的觀點
Neither Olaplex Holdings's ability to grow its EBIT nor its interest cover gave us confidence in its ability to take on more debt. But its conversion of EBIT to free cash flow tells a very different story, and suggests some resilience. We think that Olaplex Holdings's debt does make it a bit risky, after considering the aforementioned data points together. That's not necessarily a bad thing, since leverage can boost returns on equity, but it is something to be aware of. 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. These risks can be hard to spot. Every company has them, and we've spotted 2 warning signs for Olaplex Holdings you should know about.
Olaplex Holdings的EBIT增長能力以及其利息覆蓋能力都沒有增強我們對其承擔更多債務的信心。但其EBIT轉爲自由現金流的情況則有很大不同,暗示一定的彈性。考慮到上述數據點後,我們認爲Olaplex Holdings的債務確實具有一定風險。這並不一定是一件壞事,因爲槓桿可以提高股本回報率,但這也是需要注意的。毫無疑問,我們從資產負債表中獲得有關債務的最多信息。但是,最終,每個公司都可能包含存在於資產負債表之外的風險。這些風險可能很難發現。每個公司都有它們,我們已經發現了Olaplex Holdings的2個警告信號,您應該知道。
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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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。
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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