Inspur Electronic Information Industry (SZSE:000977) Takes On Some Risk With Its Use Of Debt
Inspur Electronic Information Industry (SZSE:000977) Takes On Some Risk With Its Use Of Debt
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.' 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. We can see that Inspur Electronic Information Industry Co., Ltd. (SZSE:000977) does use debt in its business. But the more important question is: how much risk is that debt creating?
David Iben說得好:“波動性並不是我們關心的風險。我們關心的是避免資本的永久損失。”考慮公司的資產負債表是一種理性的方法,因爲當一個企業倒閉時,往往涉及債務問題。我們可以看到,浪潮信息股權有限公司 (SZSE:000977) 的業務中使用了債務,但更重要的問題是:這些債務會產生多少風險?
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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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 examine debt levels, we first consider both cash and debt levels, together.
直到業務通過新資本或自由現金流償還債務,債務才能幫助業務。資本主義的一個不可缺少的部分是“創造性破壞”過程,倒閉的企業會被銀行無情地清算。然而,一個更普遍(但仍然令人痛苦)的場景是,它不得不以較低的價格籌集新的股本資金,從而永久地稀釋股東。不過,通過取代稀釋,債務可以成爲需要高回報率投資增長資本的企業的極好工具。在審查債務水平時,我們首先考慮現金和債務水平。
How Much Debt Does Inspur Electronic Information Industry Carry?
浪潮信息股權負載多少債務?
As you can see below, Inspur Electronic Information Industry had CN¥12.9b of debt, at March 2024, which is about the same as the year before. You can click the chart for greater detail. However, it also had CN¥7.20b in cash, and so its net debt is CN¥5.66b.
正如下圖所示,2024年3月浪潮信息股權負債129億人民幣,與上一年度幾乎相同。可以點擊圖表查看詳細信息。它也有72億現金,因此其淨債務爲56.6億人民幣。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240716/0-95d016dd754608cb800beeb6da007888-0-13f571a4759a122befb59de5201cba58.png/big)
A Look At Inspur Electronic Information Industry's Liabilities
浪潮信息股權負債的一覽
According to the last reported balance sheet, Inspur Electronic Information Industry had liabilities of CN¥23.1b due within 12 months, and liabilities of CN¥8.22b due beyond 12 months. Offsetting this, it had CN¥7.20b in cash and CN¥11.7b in receivables that were due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by CN¥12.4b.
根據最後一份財務報表,浪潮信息股權的12個月內到期負債爲231億元人民幣,12個月後到期負債爲82.2億人民幣。抵銷這一點,它有72億人民幣現金和117億元人民幣的應收賬款即將到期。因此,其負債比其現金和(短期)應收賬款總和多124億人民幣。
This deficit isn't so bad because Inspur Electronic Information Industry is worth CN¥55.8b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
由於浪潮信息股權價值達到了558億人民幣,因此即使需要,它也可能籌集足夠的資本來改善其資產負債表。但很明顯,我們需要仔細審查它是否能夠在不稀釋股權的情況下管理其債務。
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). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
我們通過將公司的淨債務與其息稅折舊攤銷前利潤(EBITDA)相除,並計算其息稅前利潤(EBIT)如何覆蓋其利息費用(利息覆蓋率)來衡量公司的債務負擔相對於其盈利能力。因此,我們同時考慮債務的絕對數量以及所支付的利率。
Inspur Electronic Information Industry has a debt to EBITDA ratio of 3.4, which signals significant debt, but is still pretty reasonable for most types of business. But its EBIT was about 1k times its interest expense, implying the company isn't really paying a high cost to maintain that level of debt. Even were the low cost to prove unsustainable, that is a good sign. Unfortunately, Inspur Electronic Information Industry's EBIT flopped 13% over the last four quarters. If that sort of decline is not arrested, then the managing its debt will be harder than selling broccoli flavoured ice-cream for a premium. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Inspur Electronic Information Industry's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
浪潮信息股權的債務與EBITDA比率爲3.4,表示負債很重,但對於大多數類型的企業來說仍然相當合理。但它的利息倍數約爲0.1萬,意味着該公司維持這種債務水平的成本並不高。即使低成本無法持續,這也是一個好的信號。不幸的是,浪潮信息股權的EBIt在過去四個季度中下降了13%。如果這種下降趨勢沒有得到改善,那麼管理債務將比銷售口味爲花椰菜味的冰淇淋更爲困難。
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. Over the last three years, Inspur Electronic Information Industry saw substantial negative free cash flow, in total. While that may be a result of expenditure for growth, it does make the debt far more risky.
最終,業務需要自由現金流來償還債務;賬面利潤並不能起到作用。因此,我們需要清楚地了解EBIt是否導致相應的自由現金流。在過去的三年中,浪潮信息股權的自由現金流相當大的負數。雖然這可能是爲了增長而支出,但它會使債務更加風險。
Our View
我們的觀點
Mulling over Inspur Electronic Information Industry's attempt at converting EBIT to free cash flow, we're certainly not enthusiastic. But on the bright side, its interest cover is a good sign, and makes us more optimistic. Looking at the balance sheet and taking into account all these factors, we do believe that debt is making Inspur Electronic Information Industry stock a bit risky. That's not necessarily a bad thing, but we'd generally feel more comfortable with less leverage. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. These risks can be hard to spot. Every company has them, and we've spotted 1 warning sign for Inspur Electronic Information Industry you should know about.
考慮浪潮信息股權將EBIt轉化爲自由現金流的嘗試,我們並不是很樂觀。但好的一面是,它的利息覆蓋率很好,這使我們更加樂觀。綜合考慮資產負債表和所有這些因素,我們確實認爲債務讓浪潮信息股權股票變得有點冒險。這並不一定是件壞事,但我們通常會覺得槓桿率更低會更爲安全可靠。在分析債務水平時,資產負債表是明顯的起點。然而,並不是所有的投資風險都存在於資產負債表中,風險往往很難察覺。每個企業都存在此類風險,我們已經觀察到了浪潮信息股權的1個警告信號,你應該知道。
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.
歸根結底,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,其中包括所有表現出盈利增長軌跡的公司。這是免費的。
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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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