Is Guangdong Zhongsheng Pharmaceutical (SZSE:002317) A Risky Investment?
Is Guangdong Zhongsheng Pharmaceutical (SZSE:002317) A Risky Investment?
Warren Buffett famously said, '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. We can see that Guangdong Zhongsheng Pharmaceutical Co., Ltd. (SZSE:002317) does use debt in its business. But should shareholders be worried about its use of debt?
禾倫•巴菲特曾經說過,波動性遠非風險的近義詞。因此,顯然明智的投資者知道,在評估公司風險時,通常涉及破產的債務是一個非常重要的因素。我們可以看到,廣東衆生藥業股份有限公司(深圳證券交易所:002317)的業務中確實使用了債務。但是,股東們應該擔心它使用債務的情況嗎?
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. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
當企業無法輕易地通過自由現金流或以有吸引力的價格籌集資本來履行這些義務時,債務和其他負債變得風險較高。如果公司不能履行其償還債務的法定義務,則股東可能會什麼都得不到。然而,更普遍(但仍很痛苦)的情況是,公司必須以低價募集新股權資本,從而永久稀釋股東的權益。話雖如此,最普遍的情況是公司合理地管理其債務,並獲得自己的優勢。當考慮企業使用多少債務時,首要的是同時查看其現金和債務。
How Much Debt Does Guangdong Zhongsheng Pharmaceutical Carry?
廣東衆生藥業負債多少?
The image below, which you can click on for greater detail, shows that Guangdong Zhongsheng Pharmaceutical had debt of CN¥429.4m at the end of March 2024, a reduction from CN¥594.3m over a year. But on the other hand it also has CN¥1.64b in cash, leading to a CN¥1.21b net cash position.
下圖顯示,截至2024年3月底,廣東衆生藥業的債務爲4.294億元人民幣,較去年降低5,943萬元人民幣。但另一方面,它還擁有16.4億元現金,形成了12.1億元淨現金收支。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240723/0-bbe6f6c3a0f217c65aa5f26d0323660c-0-f56ed7420ecfa8e29d9cdc286b1e1879.png/big)
How Healthy Is Guangdong Zhongsheng Pharmaceutical's Balance Sheet?
廣東衆生藥業的資產負債表狀況如何?
The latest balance sheet data shows that Guangdong Zhongsheng Pharmaceutical had liabilities of CN¥826.0m due within a year, and liabilities of CN¥821.2m falling due after that. On the other hand, it had cash of CN¥1.64b and CN¥1.23b worth of receivables due within a year. So it actually has CN¥1.22b more liquid assets than total liabilities.
最新的資產負債表數據顯示,廣東衆生藥業有8260萬元債務到期於一年內,其餘8212萬元債務到期於一年後。另一方面,有16.4億元現金和12.3億元應收賬款到期於一年內。因此,它實際上擁有比總負債多1.22億元的流動性資產。
This short term liquidity is a sign that Guangdong Zhongsheng Pharmaceutical could probably pay off its debt with ease, as its balance sheet is far from stretched. Simply put, the fact that Guangdong Zhongsheng Pharmaceutical has more cash than debt is arguably a good indication that it can manage its debt safely.
這種短期流動性是廣東衆生藥業可能可以輕鬆償還債務的跡象,因爲其資產負債表遠未過度負擔。簡而言之,廣東衆生藥業擁有的現金比債務更多,可以認爲這是其安全管理債務的一個好跡象。
In fact Guangdong Zhongsheng Pharmaceutical's saving grace is its low debt levels, because its EBIT has tanked 24% in the last twelve months. When a company sees its earnings tank, it can sometimes find its relationships with its lenders turn sour. 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 Guangdong Zhongsheng Pharmaceutical 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.
事實上,廣東衆生藥業的救星是其低債務水平,因爲其淨息稅前利潤在最近12個月中下跌了24%。當公司見證其收益下跌時,有時會發現與其貸方的關係變得糟糕。當您分析債務時,資產負債表顯然是一個需要關注的領域。但最終,企業的未來盈利能力將決定廣東衆生藥業能否隨着時間的推移加強其資產負債表。因此,如果您想了解專業人士的看法,可以查看分析師盈利預測免費報告,這可能會引起您的興趣。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. While Guangdong Zhongsheng Pharmaceutical 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. Considering the last three years, Guangdong Zhongsheng Pharmaceutical actually recorded a cash outflow, overall. Debt is usually more expensive, and almost always more risky in the hands of a company with negative free cash flow. Shareholders ought to hope for an improvement.
最後,業務需要自由現金流來償還債務;會計利潤不起作用。儘管廣東衆生藥業的資產負債表上有淨現金,但仍值得研究其將息稅前利潤(EBIT)轉換爲自由現金流的能力,以幫助我們理解它正在多快地積累(或流失)現金。如果考慮過去三年的情況,廣東衆生藥業實際上出現了現金流流出的情況。對於一個具有負自由現金流的公司來說,債務通常更加昂貴,風險也更高。股東們應該希望出現改善的情況。
Summing Up
總之
While we empathize with investors who find debt concerning, you should keep in mind that Guangdong Zhongsheng Pharmaceutical has net cash of CN¥1.21b, as well as more liquid assets than liabilities. So we don't have any problem with Guangdong Zhongsheng Pharmaceutical's use of debt. 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. To that end, you should learn about the 3 warning signs we've spotted with Guangdong Zhongsheng Pharmaceutical (including 1 which can't be ignored) .
雖然我們理解投資者可能會對債務感到擔憂,但您應該記住,廣東衆生藥業淨現金1.21億元,並且具有比負債更多的流動性資產。因此,我們對廣東衆生藥業使用債務沒有任何問題。當您分析債務時,資產負債表顯然是一個需要關注的領域。但最終,每家公司都可能面臨與資產負債表之外的風險。因此,您應該了解我們發現的3個警告信號(包括一個不能忽視的信號)。
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.
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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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。