We're Not Worried About Feitian Technologies' (SZSE:300386) Cash Burn
We're Not Worried About Feitian Technologies' (SZSE:300386) Cash Burn
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.
即使公司正在虧損,股東也有可能通過以正確的價格買入好的公司來賺錢。例如,生物技術和礦業勘探公司在找到新的治療方法或礦物質發現之前通常會連續多年虧損。儘管如此,只有傻子才會忽略虧損公司很快就會燒完現金的風險。
Given this risk, we thought we'd take a look at whether Feitian Technologies (SZSE:300386) shareholders should be worried about its cash burn. For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.
鑑於這種風險,我們想看一下飛天誠信(SZSE:300386)的股東是否應該擔心其現金流燃燒。本文中,我們將現金流燃燒定義爲公司用於資助其成長(也稱爲負自由現金流)的現金支出總額。我們將首先比較其現金流燃燒與其現金儲備以便計算其現金儲備運營時間。
Does Feitian Technologies Have A Long Cash Runway?
飛天誠信的現金儲備運營時間長嗎?
A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. When Feitian Technologies last reported its March 2024 balance sheet in April 2024, it had zero debt and cash worth CN¥214m. In the last year, its cash burn was CN¥11m. So it had a very long cash runway of many years from March 2024. While this is only one measure of its cash burn situation, it certainly gives us the impression that holders have nothing to worry about. The image below shows how its cash balance has been changing over the last few years.
現金儲備運營時間是指如果一家公司以其目前的現金流燃燒速度保持支出,其資金耗盡需要的時間。當飛天誠信於2024年3月報告其2024年3月的資產負債表時,其債務爲零,現金價值爲人民幣21400萬。在過去一年中,其現金流燃燒爲人民幣1100萬。因此,自2024年3月以來,其現金儲備運營時間長達多年。雖然這只是現金流燃燒情況的一個指標,但它確實讓我們覺得股東們無需擔心。下圖顯示了其現金餘額在過去幾年中的變化情況。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240807/0-0f8ac07e7b29ce6bf3dc7abf8db1e21d-0-714c998889c568502d4b424f996f95b3.png/big)
How Well Is Feitian Technologies Growing?
飛天誠信的業務增長如何?鑑於我們關注飛天誠信的現金流燃燒情況,我們很高興看到其現金流燃燒率下降了92%。但是,在此期間營業收入下降14%有點令人不安。儘管如此,本文僅對公司的增長數據進行了簡短的研究。您可以通過查看其營收和盈利歷史的可視化來了解飛天誠信如何發展業務。
Given our focus on Feitian Technologies' cash burn, we're delighted to see that it reduced its cash burn by a nifty 92%. But it was a bit disconcerting to see operating revenue down 14% in that time. It seems to be growing nicely. In reality, this article only makes a short study of the company's growth data. You can take a look at how Feitian Technologies has developed its business over time by checking this visualization of its revenue and earnings history.
飛天誠信能輕鬆籌集更多現金嗎?我們對飛天誠信過去一年的進展印象非常深刻,但這也值得考慮,如果其想籌集更多現金來支持更快的增長,那將是多麼昂貴。一般而言,上市公司可以通過發行股票或承擔債務來籌集新的現金。許多公司最終會發行新股票來資助未來的增長。我們可以將公司的現金流燃燒率與其市值相比,以了解一家公司需要發行多少新股才能資助一年的業務運營。
Can Feitian Technologies Raise More Cash Easily?
飛天誠信能輕鬆籌集更多現金嗎?
We are certainly impressed with the progress Feitian Technologies has made over the last year, but it is also worth considering how costly it would be if it wanted to raise more cash to fund faster growth. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Many companies end up issuing new shares to fund future growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.
飛天誠信市值爲人民幣35億,去年燒掉人民幣1100萬,佔公司市值的0.3%。因此,它幾乎肯定可以借一點錢來資助另一年的增長,或者通過發行幾股輕鬆籌集資金。
Feitian Technologies has a market capitalisation of CN¥3.5b and burnt through CN¥11m last year, which is 0.3% of the company's market value. So it could almost certainly just borrow a little to fund another year's growth, or else easily raise the cash by issuing a few shares.
飛天誠信的現金燃燒情況有多大風險?正如您現在所了解的那樣,我們對飛天誠信的現金流燃燒並不太擔心。例如,我們認爲其現金流燃燒率下降表明該公司走上了一條良好的道路。雖然其營業收入下降並不理想,但本文提到的其他因素已經足以彌補這一缺陷。考慮到本報告中的所有因素,我們對其現金流燃燒並不擔心,因爲該業務資本實力充足,可以根據需要進行資本開支。在投資股票之前,讀者需要充分了解業務風險,我們已經發現飛天誠信存在兩個警告信號,潛在股東在投入股票之前應該考慮這些因素。
How Risky Is Feitian Technologies' Cash Burn Situation?
飛天誠信的現金燃燒情況有多大風險?
As you can probably tell by now, we're not too worried about Feitian Technologies' cash burn. For example, we think its cash burn reduction suggests that the company is on a good path. While its falling revenue wasn't great, the other factors mentioned in this article more than make up for weakness on that measure. Taking all the factors in this report into account, we're not at all worried about its cash burn, as the business appears well capitalized to spend as needs be. Readers need to have a sound understanding of business risks before investing in a stock, and we've spotted 2 warning signs for Feitian Technologies that potential shareholders should take into account before putting money into a stock.
正如您現在可能可以看出的那樣,我們對飛天誠信的現金流燃燒並不太擔心。例如,我們認爲其現金流燃燒率下降表明該公司正在走上一條良好的道路。雖然其營業收入下降並不理想,但本文提到的其他因素已經足以彌補這一缺陷。考慮到本報告中的所有因素,我們對其現金流燃燒並不擔心,因爲該業務資本實力充足,可以根據需要進行資本開支。在投資股票之前,讀者需要充分了解業務風險,我們已經發現飛天誠信存在兩個警告信號,潛在股東在投入股票之前應該考慮這些因素。
If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow.
如果您希望查詢其他基本面更好的公司,則不要錯過具有高淨資產回報率和低債務的有趣公司免費列表,或者這個預計所有股票都會增長的股票列表。
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。