Is Rollins (NYSE:ROL) Using Too Much Debt?
Is Rollins (NYSE:ROL) Using Too Much Debt?
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 might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. Importantly, Rollins, Inc. (NYSE:ROL) does carry debt. But the real question is whether this debt is making the company risky.
作爲一位投資者,有人認爲波動性而非債務是思考風險最好的方式,但是禾倫·巴菲特曾經說過:「波動性遠非風險代名詞。」因此,當你思考任何股票的風險時,需要考慮債務,因爲過多債務可能會拖垮一家公司。重要的是,Rollins,Inc. (NYSE:ROL)確實持有債務。真正的問題是,這份債務是否使公司變得冒險。
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
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. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest 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.
當一家企業無法通過自由現金流或以有吸引力的價格籌集資本來輕鬆履行債務和其他負債時,債務和其他負債就會變得有風險。 如果情況變得非常糟糕,借方可以控制整個業務。 儘管這種情況不太常見,但我們經常看到負債累累的公司永久地稀釋股東,因爲借方迫使它們以緊急價格籌集資本。 當然,債務的好處在於,它通常代表着廉價資本,特別是當它代替了那些具有重新投資能力的高回報率公司的稀釋時。 考慮一家企業使用了多少債務時,首先要做的是將其現金和債務合併查看。
What Is Rollins's Debt?
Rollins的債務情況是什麼?
The image below, which you can click on for greater detail, shows that at March 2024 Rollins had debt of US$510.9m, up from US$62.4m in one year. However, it also had US$113.0m in cash, and so its net debt is US$397.9m.
下圖顯示了Rollins在2024年3月有510.9百萬美元的債務,較去年的624百萬美元增加。然而,它也有1,130百萬美元的現金,因此其淨債務爲3,979百萬美元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240722/0-fb24075fa4ab64cebf45008e49f28204-0-2a8a3576e821cccdbb5527c01eeee406.png/big)
How Strong Is Rollins' Balance Sheet?
Rollins的資產負債表狀況如何?
The latest balance sheet data shows that Rollins had liabilities of US$591.9m due within a year, and liabilities of US$899.2m falling due after that. On the other hand, it had cash of US$113.0m and US$213.0m worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$1.17b.
最新的資產負債表數據顯示Rollins有59.19億美元的短期負債和89.92億美元的長期負債即將到期。另一方面,它擁有1,130百萬美元的現金和21.3億美元的短期應收賬款。因此,其負債超過現金和(短期)應收賬款的總和117億美元。
Of course, Rollins has a titanic market capitalization of US$23.9b, so these liabilities are probably manageable. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.
當然,Rollins擁有239億美元的龐大市值,因此這些負債可能是可以管理的。話雖如此,我們清楚地知道應繼續監測其資產負債表,以防情況惡化。
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). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
爲了對公司的債務相對於其收益進行規模適應,我們計算其淨債務與利息、稅、折舊和攤銷前收益(EBITDA)之比及其稅前收益(EBIT)與利息支出之比(利息保障倍數)。因此,我們既考慮到不包括折舊和攤銷費用在內的收益,又包括折舊和攤銷費用的收益相對於債務。
Rollins's net debt is only 0.56 times its EBITDA. And its EBIT covers its interest expense a whopping 23.2 times over. So we're pretty relaxed about its super-conservative use of debt. And we also note warmly that Rollins grew its EBIT by 19% last year, making its debt load easier to handle. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Rollins'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.
Rollins的淨債務僅爲其EBITDA的0.56倍。另外,其EBIt足以覆蓋其利息支出的23.2倍。因此,我們對其極爲保守的債務使用感到相當輕鬆。我們還熱情地注意到,Rollins去年EBIt增長了19%,公司的債務負擔因此得以更輕鬆承擔。分析債務水平時,資產負債表是明顯的起點。但重要的是,未來的收益,而不是任何東西,將決定Rollins保持健康資產負債表的能力。因此,如果您想查看專業人士的想法,您可能會發現這份關於分析師盈利預測的免費報告有趣。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we always check how much of that EBIT is translated into free cash flow. Over the last three years, Rollins recorded free cash flow worth a fulsome 83% of its EBIT, which is stronger than we'd usually expect. That puts it in a very strong position to pay down debt.
最後,雖然稅務人員可能喜歡會計利潤,但放貸人只接受冰冷的現金。因此,我們始終檢查EBIt轉化爲自由現金流的金額。在過去的三年裏,Rollins記錄的自由現金流價值達到了其EBIt的83%,這比我們通常預期的更強。這使其處於非常強大的償付債務的位置。
Our View
我們的觀點
The good news is that Rollins's demonstrated ability to cover its interest expense with its EBIT delights us like a fluffy puppy does a toddler. And the good news does not stop there, as its conversion of EBIT to free cash flow also supports that impression! Overall, we don't think Rollins is taking any bad risks, as its debt load seems modest. So we're not worried about the use of a little leverage on the balance sheet. We'd be very excited to see if Rollins insiders have been snapping up shares. If you are too, then click on this link right now to take a (free) peek at our list of reported insider transactions.
好消息是,Rollins表現出了使用EBIt覆蓋利息費用的卓越能力,這讓我們像蓬鬆的小狗一樣感到欣喜。好消息並未止於此,因爲EBIt轉化爲自由現金流的能力也支持這種印象!總的來說,我們認爲Rollins並沒有冒任何壞風險,因爲其債務負擔似乎很小。因此,我們對於在資產負債表上使用一點槓桿不擔心。我們將非常興奮地看到Rollins內部人士有沒有正在購買股票。如果您也希望了解更多,那麼請點擊此鏈接,即可免費查看我們所報道的內部交易清單。
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。