We Think Huachangda Intelligent Equipment GroupLtd (SZSE:300278) Is Taking Some Risk With Its Debt
We Think Huachangda Intelligent Equipment GroupLtd (SZSE:300278) Is Taking Some Risk With Its 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 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. Importantly, Huachangda Intelligent Equipment Group Co.,Ltd. (SZSE:300278) does carry debt. But should shareholders be worried about its use of debt?
作爲投資者,有些人認爲波動性而不是債務是思考風險的最佳途徑,但禾倫·巴菲特曾經說過:“波動性遠非風險的同義詞。”因此,看起來聰明的投資者知道,債務(通常與破產有關)是評估公司風險時非常重要的因素。重要的是,華昌達智能裝備集團股份有限公司(SZSE:300278)確實存在債務。但股東應該擔心它使用債務嗎?
When Is Debt Dangerous?
債務何時有危險?
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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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, 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.
當業務無法輕鬆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,債務和其他負債就會變得具有風險。資本主義的一部分是“創造性破壞”過程,即銀行家無情地清算失敗的企業。然而,一種更常見的(但仍然昂貴的)情況是,公司必須以低廉的股票價格稀釋股東權益,以簡化債務的控制。當然,債務的好處在於它通常代表着廉價資本,尤其是當它用於替代以高回報率再投資能力的稀釋的時候。考慮一個業務使用多少債務時,首先要做的是看看它的現金和債務情況。
What Is Huachangda Intelligent Equipment GroupLtd's Debt?
華昌達智能裝備集團有限公司的債務是什麼?
The image below, which you can click on for greater detail, shows that at March 2024 Huachangda Intelligent Equipment GroupLtd had debt of CN¥57.3m, up from CN¥11.3m in one year. But on the other hand it also has CN¥555.8m in cash, leading to a CN¥498.5m net cash position.
下面的圖片顯示,在2024年3月華昌達智能裝備集團有限公司的債務爲5730萬元人民幣,而一年前爲1130萬元人民幣。但另一方面,其又有55580萬元人民幣的現金,從而形成了49850萬元人民幣的淨現金位置。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240801/0-bc0d7592e1c05f50a5717aae54a239e5-0-ef66641b1ee9e6c1bf5afbb39ed544fe.png/big)
How Healthy Is Huachangda Intelligent Equipment GroupLtd's Balance Sheet?
華昌達智能裝備集團有限公司的資產負債表有多健康?
Zooming in on the latest balance sheet data, we can see that Huachangda Intelligent Equipment GroupLtd had liabilities of CN¥1.23b due within 12 months and liabilities of CN¥44.8m due beyond that. Offsetting this, it had CN¥555.8m in cash and CN¥1.04b in receivables that were due within 12 months. So it can boast CN¥321.2m more liquid assets than total liabilities.
進一步觀察最新的資產負債表數據,我們可以發現,華昌達智能裝備集團有限公司的短期負債爲12.3億元人民幣,長期負債爲4480萬元人民幣。相應地,它有55580萬元人民幣的現金和104億元人民幣的應收款項,這些應收款項在12個月內到期。因此,它比總負債多出了32120萬元人民幣的流動資產。
This surplus suggests that Huachangda Intelligent Equipment GroupLtd has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that Huachangda Intelligent Equipment GroupLtd has more cash than debt is arguably a good indication that it can manage its debt safely.
這種盈餘表明華昌達智能裝備集團有限公司的資產負債表很保守,可能很容易消除其債務。簡而言之,華昌達智能裝備集團有限公司比債務更多的現金是較好的跡象,表明它可以安全地管理其債務。
In fact Huachangda Intelligent Equipment GroupLtd's saving grace is its low debt levels, because its EBIT has tanked 34% in the last twelve months. Falling earnings (if the trend continues) could eventually make even modest debt quite risky. When analysing debt levels, the balance sheet is the obvious place to start. But it is Huachangda Intelligent Equipment GroupLtd's earnings that will influence how the balance sheet holds up in the future. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.
事實上,華昌達智能裝備集團有限公司的救命稻草是其較低的債務水平,因爲過去十二個月其息稅前利潤已經下降了34%。盈利下降(如果趨勢繼續)可能最終會使即使是很小的債務也變得相當危險。在分析債務水平時,資產負債表是一個顯而易見的起點。但華昌達智能裝備集團有限公司的盈利將影響資產負債表在未來的穩定性。因此,如果您想了解更多關於其收益的信息,檢查一下其長期收益趨勢圖表可能很值得一試。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. While Huachangda Intelligent Equipment GroupLtd 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. Over the last two years, Huachangda Intelligent Equipment GroupLtd saw substantial negative free cash flow, in total. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
最後,企業需要自由現金流來償還債務;會計利潤並不能勝任。雖然華昌達智能裝備集團有限公司的資產負債表上有淨現金,但仍值得看看其將息稅前利潤轉化爲自由現金流的能力,以幫助我們了解其正在多快地建立(或消耗)現金餘額。在過去的兩年中,華昌達智能裝備集團有限公司總體上出現了相當大的負自由現金流。儘管投資者無疑希望其在不久的將來出現逆轉,但這顯然意味着它的債務使用更加危險。
Summing Up
總之
While it is always sensible to investigate a company's debt, in this case Huachangda Intelligent Equipment GroupLtd has CN¥498.5m in net cash and a decent-looking balance sheet. So although we see some areas for improvement, we're not too worried about Huachangda Intelligent Equipment GroupLtd's balance sheet. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. These risks can be hard to spot. Every company has them, and we've spotted 1 warning sign for Huachangda Intelligent Equipment GroupLtd you should know about.
雖然調查公司的債務總是明智的做法,但在此情況下,華昌達智能裝備集團有限公司具有49850萬元人民幣的淨現金和一個外表看起來不錯的資產負債表。因此,儘管我們發現了一些改進的方面,但我們並不擔心華昌達智能裝備集團有限公司的資產負債表。毫無疑問,我們從資產負債表中了解到有關債務的大多數信息。但最終,每家公司都可能存在超出資產負債表的風險。這些風險可能很難發現。每個公司都有風險,我們已經發現了華昌達智能裝備集團有限公司的1個警告標誌,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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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。