These 4 Measures Indicate That MillerKnoll (NASDAQ:MLKN) Is Using Debt Extensively
These 4 Measures Indicate That MillerKnoll (NASDAQ:MLKN) 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.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that MillerKnoll, Inc. (NASDAQ:MLKN) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
David Iben說得很好:「波動性不是我們關心的風險。我們關心的是避免資本永久損失。」在考慮公司風險時,考慮公司資產負債表是很自然的,因爲債務經常是業務崩潰時的原因。我們注意到MillerKnoll, Inc. (納斯達克: MLKN) 的資產負債表上有債務。但是真正的問題是這些債務是否會讓公司變得風險。
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. If things get really bad, the lenders can take control of the business. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. 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.
當公司無法輕鬆地通過自由現金流或以有吸引力的價格籌集資金來履行這些債務時,債務和其他負債就會對企業形成風險。如果情況變得非常糟糕,貸款人可以控制公司。然而,更常見(但仍然代價高昂)的情況是,一家公司必須以極低的價格發行股票,永久稀釋股東,以支撐其資產負債表。當然,債務可以成爲企業的重要工具,尤其是資本密集型企業。當我們思考公司使用債務時,我們首先看現金和債務一起考慮。
How Much Debt Does MillerKnoll Carry?
MillerKnoll負債多少?
As you can see below, MillerKnoll had US$1.34b of debt at June 2024, down from US$1.40b a year prior. However, it does have US$230.4m in cash offsetting this, leading to net debt of about US$1.10b.
正如下圖所示,MillerKnoll在2024年6月擁有13.4億美元的債務,比前一年的14億美元少。然而,它確實有2.3億美元的現金抵消,導致淨債務約爲11億美元。
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How Strong Is MillerKnoll's Balance Sheet?
MillerKnoll的資產負債表情況如何?
According to the last reported balance sheet, MillerKnoll had liabilities of US$697.7m due within 12 months, and liabilities of US$1.89b due beyond 12 months. Offsetting these obligations, it had cash of US$230.4m as well as receivables valued at US$330.5m due within 12 months. So it has liabilities totalling US$2.02b more than its cash and near-term receivables, combined.
根據最近披露的資產負債表顯示,MillerKnoll在12個月內有6,977萬美元的負債,超過12個月的18.9億美元的負債。抵消這些義務,它有2,304萬美元的現金以及價值3,305萬美元的應收賬款在12個月內到期。所以其負債總額超過現金和短期應收賬款的20.2億美元。
When you consider that this deficiency exceeds the company's US$1.97b market capitalization, you might well be inclined to review the balance sheet intently. In the scenario where the company had to clean up its balance sheet quickly, it seems likely shareholders would suffer extensive dilution.
考慮到這個缺陷超過了公司197億美元的市值,你可能會傾向於仔細審查資產負債表。在公司必須迅速清理資產負債表的情況下,股東們很可能會遭受嚴重的稀釋。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
我們使用兩個主要的比率來告訴我們相對於收益的債務水平。第一個是淨債務除以利息、稅、折舊和攤銷前利潤(EBITDA),而第二個是其利潤前利息和稅(EBIT)覆蓋其利息費用的次數(或其利息覆蓋率,簡稱)。因此,我們考慮與折舊和攤銷費用相關的盈利以及沒有相關費用的盈利相對於債務水平。
MillerKnoll's debt is 2.8 times its EBITDA, and its EBIT cover its interest expense 6.0 times over. This suggests that while the debt levels are significant, we'd stop short of calling them problematic. If MillerKnoll can keep growing EBIT at last year's rate of 10% over the last year, then it will find its debt load easier to manage. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if MillerKnoll 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.
MillerKnoll的債務是EBIT的2.8倍,其EBIT覆蓋了利息支出6.0倍。這表明雖然債務水平相當高,我們還是會停止稱之爲問題。如果MillerKnoll能夠保持去年的EBIT增長率爲10%,那麼它將發現其債務負擔更容易管理。在分析債務水平時,資產負債表是開始的顯而易見的地方。但最終業務的未來盈利能力將決定MillerKnoll是否能夠逐步加強資產負債表。因此,如果您關注未來,可以查看此免費報告,了解分析師的利潤預測。
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. In the last three years, MillerKnoll's free cash flow amounted to 46% of its EBIT, less than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness.
但我們最後的考慮也很重要,因爲公司無法用紙質收益支付債務;它需要真正硬的現金。因此,值得檢查這些EBIT中有多少是由自由現金流支持的。在過去的三年中,MillerKnoll的自由現金流佔其EBIT的46%,低於我們的預期。這種弱的現金轉換使得處理負債更加困難。
Our View
我們的觀點
MillerKnoll's struggle to handle its total liabilities had us second guessing its balance sheet strength, but the other data-points we considered were relatively redeeming. But on the bright side, its ability to to grow its EBIT isn't too shabby at all. When we consider all the factors discussed, it seems to us that MillerKnoll is taking some risks with its use of debt. So while that leverage does boost returns on equity, we wouldn't really want to see it increase from here. 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. We've identified 3 warning signs with MillerKnoll , and understanding them should be part of your investment process.
MillerKnoll的處理其全部負債的困難使我們對其資產負債表強度產生了疑慮,但我們考慮的其他數據點相對可圈可點。但是好在,它增長EBIT的能力並不差。當我們考慮到所有討論過的因素時,我們認爲MillerKnoll在使用債務方面存在一些風險。所以,雖然這種槓桿增加了股本回報率,但我們不希望看到它從這裏增加。當你分析債務時,資產負債表顯然是要關注的區域。但是,最終每家公司都可能存在超出資產負債表的風險。我們已經確定了MillerKnoll的3個警告信號,並了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。
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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。