Is Zhejiang Xianju PharmaceuticalLtd (SZSE:002332) Using Too Much Debt?
Is Zhejiang Xianju PharmaceuticalLtd (SZSE:002332) Using Too Much Debt?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says '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. As with many other companies Zhejiang Xianju Pharmaceutical Co.,Ltd. (SZSE:002332) makes use of debt. But is this debt a concern to shareholders?
伯克希爾哈撒韋的查理·芒格支持的外部基金經理李錄毫不掩飾地說:“最大的投資風險不是價格波動,而是是否會遭受永久性資本損失。” 當您檢查一家公司的風險時,自然而然地會考慮其資產負債表,因爲借債通常是企業破產的原因之一。 與許多其他公司一樣,浙江仙琚製藥股份有限公司(SZSE:002332)使用借款,但這種債務是否令股東擔憂?
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. If things get really bad, the lenders can take control of the business. 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 thing to do when considering how much debt a business uses is to look at its cash and debt together.
債務是幫助企業增長的工具,但如果一個企業無力償還其債權人,則存在於他們的恩惠之下。如果情況變得非常糟糕,債權人可以接管企業。然而,更頻繁發生的(但仍然昂貴)情況是,一家公司必須以低廉的價格發行股票,永久稀釋股東的利益,來支撐其資產負債表。然而,通過替代稀釋,債務可以成爲需要高回報投資增長資本的企業的極好工具。在考慮企業使用多少債務時,首要任務是審視其現金和債務總額。
What Is Zhejiang Xianju PharmaceuticalLtd's Net Debt?
仙琚製藥公司的淨債務是多少?
As you can see below, Zhejiang Xianju PharmaceuticalLtd had CN¥197.4m of debt at March 2024, down from CN¥328.4m a year prior. But it also has CN¥1.67b in cash to offset that, meaning it has CN¥1.47b net cash.
從下面可以看出,截至2024年3月,仙琚製藥有CN¥1.974億債務,比前一年的CN¥3.284億元減少。但它也有CN¥1.67億的現金來抵消這筆債務,這意味着它有CN¥1.47億的淨現金。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240715/0-837f1574ec928c89e139adec4c71ca36-0-728888f1ca8b19f5d1604b258614161f.png/big)
How Healthy Is Zhejiang Xianju PharmaceuticalLtd's Balance Sheet?
仙琚製藥公司的資產負債表狀況如何?
The latest balance sheet data shows that Zhejiang Xianju PharmaceuticalLtd had liabilities of CN¥1.12b due within a year, and liabilities of CN¥110.0m falling due after that. Offsetting these obligations, it had cash of CN¥1.67b as well as receivables valued at CN¥899.6m due within 12 months. So it actually has CN¥1.34b more liquid assets than total liabilities.
最新的資產負債表數據顯示,浙江仙琚製藥股份有限公司負有CN¥1.12億的短期負債,以及CN¥1,100萬的到期負債。抵消這些義務,它有CN¥1.67億現金和價值CN¥899.6萬的應收賬款,期限爲12個月。因此,它比總負債有CN¥1.34億更多的流動資產。
This surplus suggests that Zhejiang Xianju PharmaceuticalLtd has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that Zhejiang Xianju PharmaceuticalLtd has more cash than debt is arguably a good indication that it can manage its debt safely.
這個盈餘表明仙琚製藥公司的資產負債表非常穩健,很可能沒有太大困難就能消除其債務。簡而言之,仙琚製藥公司擁有的現金超過其債務,可以安全地管理其債務。
But the bad news is that Zhejiang Xianju PharmaceuticalLtd has seen its EBIT plunge 10% in the last twelve months. If that rate of decline in earnings continues, the company could find itself in a tight spot. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Zhejiang Xianju PharmaceuticalLtd can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
但壞消息是,仙琚製藥公司過去12個月的EBIt下降了10%。如果收益下降的速度繼續下去,公司可能會陷入困境。分析債務水平時,資產負債表是顯然的起點。但最終業務未來的盈利能力將決定仙琚製藥公司是否能夠加強其資產負債表。因此,如果您想查看專業人士的看法,您可能會發現有關分析師利潤預測的免費報告很有趣。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. While Zhejiang Xianju PharmaceuticalLtd has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. During the last three years, Zhejiang Xianju PharmaceuticalLtd produced sturdy free cash flow equating to 57% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.
最後,雖然稅務人員可能喜歡會計利潤,但貸方只接受冰冷的現金。儘管仙琚製藥公司在其資產負債表上有淨現金,但仍值得看看其將利息和稅前利潤(EBIT)轉化爲自由現金流的能力,以幫助我們了解它積累(或侵蝕)的現金平衡的速度。在過去的三年中,浙江仙琚製藥股份有限公司產生了相當穩健的自由現金流,相當於其EBIt的57%,這與我們的預期相符。這筆冰冷的現金意味着它可以在想要時減輕債務。
Summing Up
總之
While we empathize with investors who find debt concerning, you should keep in mind that Zhejiang Xianju PharmaceuticalLtd has net cash of CN¥1.47b, as well as more liquid assets than liabilities. So we are not troubled with Zhejiang Xianju PharmaceuticalLtd's debt use. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. Be aware that Zhejiang Xianju PharmaceuticalLtd is showing 1 warning sign in our investment analysis , you should know about...
雖然我們理解投資者對債務的關注,但應記住,仙琚製藥公司有CN¥1.47億的淨現金,以及比負債更多的流動資產。因此,我們不擔心仙琚製藥公司的債務使用。毫無疑問,我們從資產負債表中了解債務的大部分內容。然而,並非所有的投資風險都存在於資產負債表中。要知道,仙琚製藥公司在我們的投資分析中顯示了1個警告信號,您應該知道。。。
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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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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@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
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。