These 4 Measures Indicate That Huaibei Mining HoldingsLtd (SHSE:600985) Is Using Debt Reasonably Well
These 4 Measures Indicate That Huaibei Mining HoldingsLtd (SHSE:600985) Is Using Debt Reasonably Well
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Huaibei Mining Holdings Co.,Ltd. (SHSE:600985) does have debt on its balance sheet. But is this debt a concern to shareholders?
禾倫•巴菲特曾經說過:「波動性遠非風險的同義詞。」 當我們考慮一家公司的風險時,我們總是喜歡看看它的債務使用情況,因爲債務過載可能導致破產。 我們注意到,淮北礦業股份有限公司(上證600985)的資產負債表中確實有債務。 但是這筆債務是否會讓股東感到擔憂呢?
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. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we think about a company's use of debt, we first look at cash and debt together.
債務是幫助企業成長的工具,但如果企業無法償還其債權人,則它將存在於債權人的掌控之中。在最壞的情況下,如果一個公司無法償還其債權人,它就會破產。然而,更常見的(但仍然昂貴的)情況是公司必須以低廉的價格稀釋股東,以便控制債務。當然,債務可以成爲企業的重要工具,特別是資本密集型企業。當我們考慮公司使用債務時,我們首先看現金和負債的結合。
What Is Huaibei Mining HoldingsLtd's Debt?
淮北礦業股份有限公司的債務是什麼?
As you can see below, Huaibei Mining HoldingsLtd had CN¥6.85b of debt at March 2024, down from CN¥13.3b a year prior. But it also has CN¥8.11b in cash to offset that, meaning it has CN¥1.25b net cash.
正如下文所示,淮北礦業股份有限公司在2024年3月份的債務爲685億元,比去年同期的1,330億元下降。 但它也有811億元的現金來抵消這筆債務,這意味着它有125億元的淨現金。
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A Look At Huaibei Mining HoldingsLtd's Liabilities
深入分析淮北礦業股份有限公司的負債
Zooming in on the latest balance sheet data, we can see that Huaibei Mining HoldingsLtd had liabilities of CN¥26.4b due within 12 months and liabilities of CN¥14.5b due beyond that. Offsetting these obligations, it had cash of CN¥8.11b as well as receivables valued at CN¥5.98b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by CN¥26.8b.
進一步觀察最新的資產負債數據,我們可以看到淮北礦業股份有限公司在12個月內到期的負債爲264億元,超過12個月到期的負債爲145億元。與此同時,它擁有811億元的現金以及價值598億元的應收賬款在12個月內到期。 因此,它的負債超過了其現金和(短期)應收賬款總和268億元。
This is a mountain of leverage relative to its market capitalization of CN¥38.9b. Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution. While it does have liabilities worth noting, Huaibei Mining HoldingsLtd also has more cash than debt, so we're pretty confident it can manage its debt safely.
相對於其市值389億元,這是一座負債累累的大山。 如果借貸方要求其加強資產負債表,股東們可能面臨嚴重的稀釋。 雖然它確實有值得注意的負債,但淮北礦業股份有限公司擁有的現金比債務多,因此我們相當有信心它可以安全地管理債務。
It is just as well that Huaibei Mining HoldingsLtd's load is not too heavy, because its EBIT was down 32% over the last year. When a company sees its earnings tank, it can sometimes find its relationships with its lenders turn sour. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Huaibei Mining HoldingsLtd 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.
淮北礦業股份有限公司的負擔並不重,因爲它的EBIt在過去一年內下降了32%。 當一家公司看到其收益急劇下降時,有時會導致其與債權人的關係惡化。 在分析債務水平時,資產負債表是顯而易見的起點。 但最終業務的未來盈利能力將決定淮北礦業股份有限公司能否隨着時間的推移加強其資產負債表。 因此,如果您關注未來,可以查看這份免費報告以顯示分析師的盈利預測。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. Huaibei Mining HoldingsLtd may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. During the last three years, Huaibei Mining HoldingsLtd generated free cash flow amounting to a very robust 86% of its EBIT, more than we'd expect. That puts it in a very strong position to pay down debt.
但我們的最後考慮也很重要,因爲一家公司不能用紙質利潤償還債務; 它需要冰冷的現金。 淮北礦業股份有限公司可能會在資產負債表上擁有淨現金,但是查看業務將其利潤前利息、稅、折舊和攤銷(EBIT)轉化爲自由現金流的能力也很有趣,因爲這將影響其管理債務的需要和能力。 在過去三年中,淮北礦業股份有限公司產生了非常穩健的自由現金流,相當於其EBIt的86%,超出我們的預期。 這使其在償還債務方面處於非常有利的位置。
Summing Up
總之
While Huaibei Mining HoldingsLtd does have more liabilities than liquid assets, it also has net cash of CN¥1.25b. The cherry on top was that in converted 86% of that EBIT to free cash flow, bringing in CN¥5.3b. So we are not troubled with Huaibei Mining HoldingsLtd's debt use. The balance sheet is clearly the area to focus on when you are analysing debt. 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 2 warning signs for Huaibei Mining HoldingsLtd you should know about.
雖然淮北礦業股份有限公司確實有更多的負債比流動資產,但它也擁有淨現金125億元。 更值得一提的是,它將86%的EBIt轉化爲自由現金流,帶來530億元。 因此,我們對淮北礦業股份有限公司的債務使用情況並不擔憂。 當您分析債務時,資產負債表顯然是關注的重點。 然而,並非所有的投資風險都駐留在資產負債表內 - 遠非如此。 這些風險可能很難發現。 每家公司都有,我們已經發現淮北礦業股份有限公司的2個警告標誌,您應該知道。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
說到底,有時候更容易集中精力關注根本不需要債務的公司。讀者可以免費訪問零淨債務增長股票列表。
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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。