These 4 Measures Indicate That ATI (NYSE:ATI) Is Using Debt Extensively
These 4 Measures Indicate That ATI (NYSE:ATI) Is Using Debt Extensively
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.' 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. As with many other companies ATI Inc. (NYSE:ATI) makes use of debt. But the real question is whether this debt is making the company risky.
正如David Iben所說,「波動性並非我們關心的風險,我們關心的是避免永久性資本損失。」因此,所謂聰明錢了解的是,(破產時通常涉及)債務是衡量公司風險的一個非常重要的因素。正如很多其他公司一樣,ati inc.(紐交所:ati)利用債務進行融資。但真正的問題在於,這筆債務是否使得該公司變得風險加大。
When Is Debt A Problem?
什麼時候負債才是一個問題?
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, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.
當企業無法通過自由現金流或以有吸引力的價格籌集資金時,債務和其他負債對企業構成風險。如果情況變得非常糟糕,債權人將接管企業。雖然這並不是太常見的,但我們經常看到負債累累的公司永久性地稀釋股東,因爲債權人強迫它們以困境價格籌集資本。當然,債務可以成爲企業的重要工具,特別是那些資本重的企業。當我們檢查債務水平時,我們首先考慮現金和債務水平。
How Much Debt Does ATI Carry?
ati公司負債多少?
You can click the graphic below for the historical numbers, but it shows that as of March 2024 ATI had US$2.07b of debt, an increase on US$1.65b, over one year. However, it also had US$394.8m in cash, and so its net debt is US$1.68b.
您可以單擊下面的圖表查看歷史數據,但它顯示截至2024年3月,ati的債務總額爲20.7億美元,比去年增加了1.65億美元。然而,它也有394.8百萬美元的現金,因此其淨負債爲16.8億美元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240806/0-b824fecbe9bae4c15322f556b5c560a7-0-fde920e393eeeec42706649997c6a80d.png/big)
How Strong Is ATI's Balance Sheet?
ATI公司的資產負債表有多強大?
Zooming in on the latest balance sheet data, we can see that ATI had liabilities of US$897.1m due within 12 months and liabilities of US$2.51b due beyond that. On the other hand, it had cash of US$394.8m and US$785.8m worth of receivables due within a year. So it has liabilities totalling US$2.23b more than its cash and near-term receivables, combined.
放大最新的資產負債表數據,我們可以看到,ati公司有897.1百萬美元的負債到期,而超過12個月的負債爲25.1億美元。另一方面,它有3,948百萬美元的現金以及7,858百萬美元的應收賬款到一年內到期。所以它的負債總額超過現金和短期應收款合計22.3億美元。
ATI has a market capitalization of US$7.74b, so it could very likely raise cash to ameliorate 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.
ATI公司的市值爲7.74億美元,因此如果需要,它很有可能籌集資金來改善其資產負債表。但很明顯,我們肯定應該仔細審查它是否可以管理債務而不進行股份稀釋。
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。
ATI has a debt to EBITDA ratio of 3.2 and its EBIT covered its interest expense 4.1 times. This suggests that while the debt levels are significant, we'd stop short of calling them problematic. Even worse, ATI saw its EBIT tank 30% over the last 12 months. If earnings keep going like that over the long term, it has a snowball's chance in hell of paying off that debt. 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 ATI'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.
ATI公司的債務與息稅折舊及攤銷前利潤(EBITDA)比率爲3.2,而其EBIT覆蓋了其利息費用的4.1倍。這表明雖然債務水平相當高,但我們不會認爲其成爲問題所在。更糟糕的是,ati公司在過去12個月中看到其EBIT下降了30%。如果未來的收益繼續如此下滑,它就沒有還清債務的機會。資產負債表顯然是在分析債務時應關注的領域。然而,與其它任何事情相比,未來的收益將決定ATI公司維持健康的資產負債表的能力。因此,如果您想了解專業人士的想法,您可能會發現分析師利潤預測的免費報告非常有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So it's worth checking how much of that EBIT is backed by free cash flow. Over the last three years, ATI recorded negative free cash flow, in total. 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.
但我們的最後一個考慮因素也很重要,因爲一家公司無法用虛假收益來償還債務; 它需要的是冷現金。因此,值得檢查的是該EBIT有多少被自由現金流所支持。在過去的三年中,ATI總計記錄了負自由現金流。對於現金流負面的公司而言,債務通常更昂貴,幾乎總是更有風險的。股東們應該希望有所改善。
Our View
我們的觀點
On the face of it, ATI's conversion of EBIT to free cash flow left us tentative about the stock, and its EBIT growth rate was no more enticing than the one empty restaurant on the busiest night of the year. Having said that, its ability to handle its total liabilities isn't such a worry. We're quite clear that we consider ATI to be really rather risky, as a result of its balance sheet health. So we're almost as wary of this stock as a hungry kitten is about falling into its owner's fish pond: once bitten, twice shy, as they say. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. We've identified 1 warning sign with ATI , and understanding them should be part of your investment process.
總體而言,對於ATI公司的轉換,從EBIT到自由現金流,我們對此股票感到猶豫不決,其EBIT增長率不比一年中最繁忙的晚上上空那家空蕩蕩的餐廳令人鼓舞。儘管如此,它處理總負債的能力並不令人擔憂。我們非常明確地認爲,由於其資產負債表的狀況,ATI公司存在相當大的風險。因此,對於這支股票,我們和一隻飢餓的小貓對其主人的魚塘一樣謹慎:一旦咬上了,就會變得越來越謹慎。毫無疑問,我們從資產負債表中了解到了大部分與債務相關的信息。然而,並非所有的投資風險都存在於資產負債表之內-遠非如此。我們已經找到了ATI公司的1個警示信號,理解它們應該是您投資過程的一部分。
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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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。