Here's Why Innovation New Material Technology (SHSE:600361) Has A Meaningful Debt Burden
Here's Why Innovation New Material Technology (SHSE:600361) 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.' 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, Innovation New Material Technology Co., Ltd. (SHSE:600361) does carry debt. But the real question is whether this debt is making the company risky.
David Iben說得好:“波動性不是我們所關心的風險。我們關心的是避免資本永久損失。” 看起來,明智的投資者知道-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,創新新材料技術股份有限公司(SHSE:600361)確實帶着債務。但最重要的問題是,這種債務是否使公司面臨風險。
When Is Debt A Problem?
什麼時候負債才是一個問題?
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. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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. When we think about a company's use of debt, we first look at cash and debt together.
當企業無法輕鬆通過自由現金流或以優惠的價格增發股份來履行義務時,債務和其他負債會對企業產生風險。最終,如果企業無法履行其償還債務的法律義務,股東可能面臨一無所有的風險。但是,更爲頻繁(但仍然代價高昂)的情況是,公司必須以垃圾價格發行股票,永久稀釋股東,以此來支撐其資產負債表。但債務可以替代稀釋,成爲需要高資本投資增長的企業的極好工具。當我們考慮公司對債務的利用時,首先要看現金和債務的整體情況。
How Much Debt Does Innovation New Material Technology Carry?
創新新材料技術有多少債務?
As you can see below, at the end of March 2024, Innovation New Material Technology had CN¥8.37b of debt, up from CN¥7.69b a year ago. Click the image for more detail. However, it does have CN¥2.84b in cash offsetting this, leading to net debt of about CN¥5.53b.
從下圖可以看出,在2024年3月底,創新新材料技術的債務總額爲837億元人民幣,高於一年前的769億元人民幣。點擊圖片了解更多詳情。然而,它確實有28.4億元人民幣的現金抵銷,導致淨債務約爲553億元人民幣。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240712/0-04005933fbafcf976fea7e5d719a10bc-0-979ab8b60bde1f33664d6877f50870c7.png/big)
How Healthy Is Innovation New Material Technology's Balance Sheet?
創新新材料技術的資產負債表狀況如何?
We can see from the most recent balance sheet that Innovation New Material Technology had liabilities of CN¥10.0b falling due within a year, and liabilities of CN¥1.36b due beyond that. On the other hand, it had cash of CN¥2.84b and CN¥3.93b worth of receivables due within a year. So its liabilities total CN¥4.62b more than the combination of its cash and short-term receivables.
我們可以從最近的資產負債表中看到,創新新材料技術到期應付的負債爲100億元人民幣,超過13.6億元人民幣。另一方面,它有28.4億元人民幣的現金和39.3億元人民幣的應收賬款。因此,它的負債總額比現金和短期應收賬款的總和多462億元人民幣。
This deficit isn't so bad because Innovation New Material Technology is worth CN¥18.5b, and thus could probably raise enough capital to shore up 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.
這種赤字並不太糟糕,因爲創新新材料技術價值185億元人民幣,如果必要,可能籌集到足夠的資本以支撐其資產負債表。但我們一定要保持警惕,看到其債務帶來的風險。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
我們使用兩個主要的比率來告訴我們相對於收益的債務水平。第一個是淨債務除以利息、稅、折舊和攤銷前利潤(EBITDA),而第二個是其利潤前利息和稅(EBIT)覆蓋其利息費用的次數(或其利息覆蓋率,簡稱)。因此,我們考慮與折舊和攤銷費用相關的盈利以及沒有相關費用的盈利相對於債務水平。
Innovation New Material Technology has a debt to EBITDA ratio of 2.8 and its EBIT covered its interest expense 4.9 times. Taken together this implies that, while we wouldn't want to see debt levels rise, we think it can handle its current leverage. We saw Innovation New Material Technology grow its EBIT by 5.1% in the last twelve months. That's far from incredible but it is a good thing, when it comes to paying off debt. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Innovation New Material Technology can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
創新新材料技術的債務對EBITDA比率爲2.8,其EBIT覆蓋其利息支出的4.9倍。綜合考慮,這意味着,雖然我們不希望看到債務水平上升,但我們認爲它可以處理其當前的槓桿。在過去的十二個月中,我們看到創新新材料技術的EBIT增長了5.1%。雖然還不可稱爲不可思議,但在償還債務方面是一件好事。當您分析債務時,資產負債表顯然是重點區域。但最終,企業未來的盈利能力將決定創新新材料技術能否隨着時間的推移加強其資產負債表。因此,如果您專注於未來,您可以查看這份免費報告,其中顯示了分析師的收益預測。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Innovation New Material Technology burned a lot of cash. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
最後,企業需要自由現金流來償還債務;會計利潤根本不夠。因此,我們明確需要查看該EBIt是否帶來相應的自由現金流。在過去的三年中,創新新材料技術消耗了大量現金。雖然投資者毫無疑問地希望在適當的時候扭轉這種情況,但它確實意味着其債務使用更具風險性。
Our View
我們的觀點
Innovation New Material Technology's struggle to convert EBIT to free cash flow 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 grow its EBIT isn't too shabby at all. Taking the abovementioned factors together we do think Innovation New Material Technology's debt poses some risks to the business. While that debt can boost returns, we think the company has enough leverage now. 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. For example, we've discovered 4 warning signs for Innovation New Material Technology (2 don't sit too well with us!) that you should be aware of before investing here.
創新新材料技術難以將EBIt轉化爲自由現金流,這讓我們對其資產負債表的實力產生了疑慮,但我們考慮的其他數據點相對較好。但好在,它增長EBIt的能力也不錯。綜合考慮以上因素,我們認爲創新新材料技術的債務對該公司造成了一些風險。雖然債務可以增加回報,但我們認爲該公司已經有足夠的槓桿力量。在分析債務水平時,資產負債表是明顯的起點。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,我們發現了創新新材料技術的4個警告信號(其中2個不太令人滿意!),在投資此處之前應該注意這些信號。
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
總的來說,專注於沒有淨債務的公司往往更好。您可以訪問我們的特別列表,其中包含這些公司(所有這些公司都有盈利增長的記錄)。這是免費的。
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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.
對本文有反饋?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至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
對本文有反饋?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。