Is Sinomach Precision Industry Group (SZSE:002046) A Risky Investment?
Is Sinomach Precision Industry Group (SZSE:002046) A Risky Investment?
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.' 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, Sinomach Precision Industry Group Co., Ltd. (SZSE:002046) does carry debt. But the more important question is: how much risk is that debt creating?
作爲投資者,有些人認爲波動性而不是債務是考慮風險的最佳方式,但禾倫·巴菲特曾經說過:“波動性遠非風險的代名詞。”因此,聰明人知道,通常與破產有關的債務是評估公司風險的非常重要的因素。重要的是,國機精工股份有限公司 (SZSE:002046) 確實有債務。但更重要的問題是:這些債務構成了多少風險?
What Risk Does Debt Bring?
債務帶來了什麼風險?
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. If things get really bad, the lenders can take control of the business. 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. 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. When we think about a company's use of debt, we first look at cash and debt together.
當企業無法通過自由現金流或者以有吸引力價格募資時,債務和其他負債對該企業的風險構成風險。如果情況變得非常糟糕,銀行家可以控制企業。然而,更常見的(但仍然痛苦)情況是必須以低價募集新的股權資本,從而永久稀釋股東的權益。通過取代稀釋,債務可以成爲需要以高回報率投資增長的企業的極好工具。當我們考慮公司使用債務時,我們首先看現金和債務總額。
How Much Debt Does Sinomach Precision Industry Group Carry?
國機精工股份有限公司承擔多少債務?
The image below, which you can click on for greater detail, shows that Sinomach Precision Industry Group had debt of CN¥679.8m at the end of March 2024, a reduction from CN¥798.2m over a year. However, because it has a cash reserve of CN¥606.1m, its net debt is less, at about CN¥73.7m.
如下所示,您可以點擊了解更多細節,國機精工股份有限公司於2024年3月底的債務爲6.798億元人民幣,同比減少7.982億元人民幣。然而,由於其現金儲備達到了6.061億元人民幣,因此其淨債務還不足7.37億元人民幣。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240626/0-245c728679db1516de46f70b6eed80bd-0-57be96c4bf1ea4a9b03042d45b1f1465.png/big)
How Strong Is Sinomach Precision Industry Group's Balance Sheet?
國機精工股份有限公司的資產負債表如何?
Zooming in on the latest balance sheet data, we can see that Sinomach Precision Industry Group had liabilities of CN¥1.18b due within 12 months and liabilities of CN¥576.2m due beyond that. Offsetting this, it had CN¥606.1m in cash and CN¥1.36b in receivables that were due within 12 months. So it actually has CN¥211.6m more liquid assets than total liabilities.
放大最新的資產負債表數據,我們可以看到,國機精工股份有限公司在12個月內需要償付1.18億元人民幣的負債和超過這一時間期限的576.2萬元人民幣的負債。抵消這些負債的是,它有6.061億元人民幣的現金和13.6億元人民幣的在12個月內到期的應收賬款。因此它實際擁有的是2.116億元人民幣的剩餘現金。比總負債還多出了更多的流動資產。
This surplus suggests that Sinomach Precision Industry Group has a conservative balance sheet, and could probably eliminate its debt without much difficulty. But either way, Sinomach Precision Industry Group has virtually no net debt, so it's fair to say it does not have a heavy debt load!
這表明國機精工股份有限公司的資產負債表非常保守,不過它可能很容易消除其債務。但無論如何,國機精工股份有限公司幾乎沒有淨債務,因此可以說它沒有沉重的債務負擔!
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). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
爲了衡量公司債務相對於其收益的大小,我們計算其淨債務除以利息、稅、折舊和攤銷前收益(EBITDA)以及其稅前收益與利息支出(其利息覆蓋率)的比率。這樣,我們既考慮了債務的絕對量,也考慮了所支付的利率。
Sinomach Precision Industry Group has a low net debt to EBITDA ratio of only 0.18. And its EBIT easily covers its interest expense, being 13.7 times the size. So we're pretty relaxed about its super-conservative use of debt. Another good sign is that Sinomach Precision Industry Group has been able to increase its EBIT by 29% in twelve months, making it easier to pay down debt. The balance sheet is clearly the area to focus on when you are analysing debt. But it is Sinomach Precision Industry Group'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.
國機精工股份有限公司的淨債務/EBITDA比率僅爲0.18。它的息稅前利潤輕鬆覆蓋其利息支出,大小相當於13.7倍。因此,我們對其超級保守的債務使用感到非常放鬆。另一個好的跡象是,國機精工股份有限公司已經在12個月內增加了29%的EBIT,使其更容易償還債務。分析債務時,資產負債表顯然是重點。但是,正是國機精工股份有限公司的收益將影響資產負債表在未來的投入。因此,如果您渴望了解更多關於其收益的知識,建議您查看它的長期盈利趨勢圖。
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. In the last three years, Sinomach Precision Industry Group's free cash flow amounted to 23% of its EBIT, less than we'd expect. That's not great, when it comes to paying down debt.
最後,儘管稅務人員可能喜歡會計利潤,但貸款人只接受冰冷的現金。因此,我們顯然需要看看這種EBIT是否能夠帶來相應的自由現金流。在過去的三年中,國機精工股份有限公司的自由現金流僅佔EBIT的23%,低於我們的預期。在償還債務方面,這並不好。
Our View
我們的觀點
Sinomach Precision Industry Group'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, on a more sombre note, we are a little concerned by its conversion of EBIT to free cash flow. Looking at the bigger picture, we think Sinomach Precision Industry Group's use of debt seems quite reasonable and we're not concerned about it. After all, sensible leverage can boost returns on equity. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. For instance, we've identified 2 warning signs for Sinomach Precision Industry Group that you should be aware of.
國機精工股份有限公司的利息保障倍數表明它可以像C·羅納爾多在14歲以下的門將面前進球那樣輕鬆地處理其債務。 但更令人擔憂的是它將EBIT轉化爲自由現金流。從更大的角度來看,我們認爲國機精工股份有限公司的債務使用似乎相當合理,我們對此並不擔憂。畢竟,明智的槓桿可以提高股本回報率。在分析債務時,資產負債表顯然是重點。但最終,每家公司都可能存在超出資產負債表範圍的風險。例如,我們已經確定 國機精工股份有限公司 存在2個警告信號,您應該注意這些信號。
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
如果您有興趣投資能夠在不負債的情況下增長利潤的企業,請查看這份免費列表,其中列出了在資產負債表上擁有淨現金的成長型企業。
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