Merit Medical Systems (NASDAQ:MMSI) Has A Rock Solid Balance Sheet
Merit Medical Systems (NASDAQ:MMSI) Has A Rock Solid Balance Sheet
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.' 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. Importantly, Merit Medical Systems, Inc. (NASDAQ:MMSI) does carry debt. But the more important question is: how much risk is that debt creating?
當David Iben說「波動性不是我們所關心的風險,我們關心的是避免永久性資本損失」時,他說得很好。當我們考慮一家公司的風險有多大時,我們總是喜歡看看它使用債務的情況,因爲債務過重可能會導致破產。重要的是,Merit Medical Systems (納斯達克股票代碼:MMSI) 確實有債務。但更重要的問題是:這些債務創造了多少風險?
When Is Debt A Problem?
什麼時候負債才是一個問題?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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, plenty of companies use debt to fund growth, without any negative consequences. When we examine debt levels, we first consider both cash and debt levels, together.
債務幫助企業,直到企業難以通過新資本或自由現金流償還。在最壞的情況下,如果一家公司無法償還債務,它可能會破產。然而,更爲頻繁(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,以永久性地稀釋股東的權益,僅僅是爲了鞏固其資產負債表。當然,很多公司使用債務來資助增長,沒有任何負面影響。當我們考慮債務水平時,我們首先考慮現金和債務的水平。
What Is Merit Medical Systems's Debt?
Merit Medical Systems的債務情況
As you can see below, at the end of June 2024, Merit Medical Systems had US$801.3m of debt, up from US$339.0m a year ago. Click the image for more detail. However, it does have US$636.9m in cash offsetting this, leading to net debt of about US$164.4m.
如下所示,在2024年6月底,Merit Medical Systems的債務總額達到了80130萬美元,而去年同期爲33900萬美元。點擊圖片查看更多細節。但它確實擁有63690萬美元的現金來抵消這些債務,爲淨債務約爲16440萬美元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240812/0-a87edd7a3d6ee8661492249802a94917-0-310969d5d293c44af305909f81288172.png/big)
How Strong Is Merit Medical Systems' Balance Sheet?
Merit Medical Systems的資產負債表有多強大?
We can see from the most recent balance sheet that Merit Medical Systems had liabilities of US$186.2m falling due within a year, and liabilities of US$903.2m due beyond that. On the other hand, it had cash of US$636.9m and US$197.4m worth of receivables due within a year. So its liabilities total US$255.1m more than the combination of its cash and short-term receivables.
我們可以看到,在最近的資產負債表中,Merit Medical Systems擁有18620萬美元的短期到期負債,90320萬美元的長期負債。另一方面,它持有63690萬美元的現金和19740萬美元的短期應收賬款。因此,其負債總額比其現金和短期應收賬款的總和高25510萬美元。
Given Merit Medical Systems has a market capitalization of US$5.27b, it's hard to believe these liabilities pose much threat. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.
鑑於Merit Medical Systems的市值爲5.27億美元,很難相信這些負債構成了多大威脅。話雖如此,很明顯我們應該繼續監視其資產負債表,以免情況惡化。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
我們通過將公司的淨債務與其息稅折舊攤銷前利潤(EBITDA)相除,並計算其息稅前利潤(EBIT)如何覆蓋其利息費用(利息覆蓋率)來衡量公司的債務負擔相對於其盈利能力。因此,我們同時考慮債務的絕對數量以及所支付的利率。
Merit Medical Systems's net debt is only 0.67 times its EBITDA. And its EBIT easily covers its interest expense, being 17.5 times the size. So you could argue it is no more threatened by its debt than an elephant is by a mouse. On top of that, Merit Medical Systems grew its EBIT by 37% over the last twelve months, and that growth will make it easier to handle its debt. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Merit Medical Systems can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Merit Medical Systems的淨債務僅爲EBITDA的0.67倍。而且它的EBIT輕鬆覆蓋了利息費用,規模爲17.5倍。因此,你可以認爲它受到債務的威脅不比大象受到老鼠的威脅大。除此之外,過去十二個月中,Merit Medical Systems的EBIT增長了37%,這種增長將使其更容易處理其債務。資產負債表顯然是你分析債務時要關注的領域。但最終業務的未來盈利能力將決定Merit Medical Systems能否隨着時間的推移加強其資產負債表。因此,如果你想知道專業人士的想法,你可能會發現這份分析師利潤預測的免費報告有趣。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. During the last three years, Merit Medical Systems generated free cash flow amounting to a very robust 80% of its EBIT, more than we'd expect. That puts it in a very strong position to pay down debt.
最後,一家企業需要自由現金流來償還債務;會計利潤不能勝任。因此,邏輯上要看看那筆EBIT中實際自由現金流所佔的比例。在過去三年中,Merit Medical Systems的自由現金流總額相當可觀,爲其EBIT的80%,超出我們的預期。這使它在還債方面處於非常強的地位。
Our View
我們的觀點
Merit Medical Systems's interest cover suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. And that's just the beginning of the good news since its conversion of EBIT to free cash flow is also very heartening. It's also worth noting that Merit Medical Systems is in the Medical Equipment industry, which is often considered to be quite defensive. It looks Merit Medical Systems has no trouble standing on its own two feet, and it has no reason to fear its lenders. For investing nerds like us its balance sheet is almost charming. Another factor that would give us confidence in Merit Medical Systems would be if insiders have been buying shares: if you're conscious of that signal too, you can find out instantly by clicking this link.
Merit Medical Systems的利息盈利率表明它可以像Cristiano Ronaldo一樣輕鬆應對債務。這只是一個好消息的開始,因爲其EBIT到自由現金流的轉化也非常令人欣慰。值得注意的是,Merit Medical Systems位於醫療器械行業,這通常被認爲是相當具有防禦性的行業板塊。看起來Merit Medical Systems不會有困難獨立生存,也沒有理由擔心它的貸款人。對於像我們這樣的投資迷來說,它的資產負債表幾乎是迷人的。如果內部人員一直在購買股票,這也將使我們對Merit Medical Systems更有信心:如果您也關注該信號,您可以通過單擊此鏈接立即找到相關信息。
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
如果您有興趣投資能夠在不負債的情況下增長利潤的企業,請查看這份免費列表,其中列出了在資產負債表上擁有淨現金的成長型企業。
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