These 4 Measures Indicate That Suzhou Shijing Environmental TechnologyLtd (SZSE:301030) Is Using Debt Extensively
These 4 Measures Indicate That Suzhou Shijing Environmental TechnologyLtd (SZSE:301030) Is Using Debt Extensively
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a 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. Importantly, Suzhou Shijing Environmental Technology Co.,Ltd. (SZSE:301030) does carry debt. But is this debt a concern to shareholders?
傳奇基金經理李露(由查理·芒格支持)曾經說過:「最大的投資風險不是價格的波動,而是你是否會遭受永久的資本損失。」因此,當你評估公司的風險時,看來聰明的貨幣知道債務(通常涉及破產)是一個非常重要的因素。重要的是,蘇州世景環境科技有限公司, Ltd.(深圳證券交易所代碼:301030)確實有債務。但是這筆債務是股東關心的問題嗎?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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. When we think about a company's use of debt, we first look at cash and debt together.
債務是幫助企業增長的工具,但是如果企業無法還清貸款人的債務,那麼債務就任其擺佈。最終,如果公司無法履行償還債務的法律義務,股東可能會一無所獲。但是,更常見(但仍然昂貴)的情況是,公司爲了控制債務,必須以低廉的股價稀釋股東。當然,債務的好處在於它通常代表廉價資本,尤其是當它以高回報率進行再投資的能力取代公司的稀釋時。當我們考慮公司使用債務時,我們首先將現金和債務放在一起考慮。
How Much Debt Does Suzhou Shijing Environmental TechnologyLtd Carry?
蘇州世景環境科技有限公司揹負了多少債務?
The image below, which you can click on for greater detail, shows that at March 2024 Suzhou Shijing Environmental TechnologyLtd had debt of CN¥2.67b, up from CN¥1.78b in one year. On the flip side, it has CN¥1.00b in cash leading to net debt of about CN¥1.67b.
您可以點擊下圖查看更多詳情,該圖片顯示,截至2024年3月,蘇州世景環境科技有限公司的債務爲26.7元人民幣,高於一年內的17.8元人民幣。另一方面,它擁有10元人民幣的現金,淨負債約爲16.7元人民幣。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240813/0-d157fb20449e3a37366d491402f833f9-0-928c05c1a99f92c43f60125dc81daa35.png/big)
How Strong Is Suzhou Shijing Environmental TechnologyLtd's Balance Sheet?
蘇州世景環境科技有限公司的資產負債表有多強?
The latest balance sheet data shows that Suzhou Shijing Environmental TechnologyLtd had liabilities of CN¥5.03b due within a year, and liabilities of CN¥1.38b falling due after that. Offsetting this, it had CN¥1.00b in cash and CN¥2.84b in receivables that were due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by CN¥2.56b.
最新的資產負債表數據顯示,蘇州世景環境科技有限公司的負債爲50.3元人民幣,此後到期的負債爲13.8元人民幣。與此相抵消的是,它有10元人民幣的現金和28.4元人民幣的應收賬款將在12個月內到期。因此,其負債超過其現金和(短期)應收賬款總額25.6元人民幣。
Suzhou Shijing Environmental TechnologyLtd has a market capitalization of CN¥4.97b, 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.
蘇州世景環境科技有限公司的市值爲49.7元人民幣,因此,如果需要,它很可能會籌集資金以改善其資產負債表。但很明顯,我們一定要仔細研究它能否在不稀釋的情況下管理債務。
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). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
我們通過以下方法來衡量公司的債務負擔與其盈利能力:將其淨負債除以利息、稅項、折舊和攤銷前的收益(EBITDA),並計算其利息和稅前收益(EBIT)支付利息支出(利息保障)的難易程度。這種方法的優勢在於,我們既考慮了債務的絕對數量(包括淨負債與息稅折舊攤銷前利潤),也考慮了與該債務相關的實際利息支出(及其利息覆蓋率)。
Suzhou Shijing Environmental TechnologyLtd has a debt to EBITDA ratio of 4.4 and its EBIT covered its interest expense 5.0 times. Taken together this implies that, while we wouldn't want to see debt levels rise, we think it can handle its current leverage. Importantly, Suzhou Shijing Environmental TechnologyLtd grew its EBIT by 89% 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 Suzhou Shijing Environmental TechnologyLtd 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.
蘇州世景環境科技有限公司的債務與息稅折舊攤銷前利潤的比率爲4.4,其息稅前利潤覆蓋了利息支出的5.0倍。綜上所述,這意味着,儘管我們不希望債務水平上升,但我們認爲它可以承受目前的槓桿率。重要的是,蘇州世景環境科技有限公司在過去十二個月中將其息稅前利潤增長了89%,這種增長將使其更容易處理債務。資產負債表顯然是分析債務時需要關注的領域。但最終,該業務未來的盈利能力將決定蘇州世景環境科技有限公司能否隨着時間的推移加強其資產負債表。因此,如果您專注於未來,可以查看這份顯示分析師利潤預測的免費報告。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Suzhou Shijing Environmental TechnologyLtd burned a lot of cash. While that may be a result of expenditure for growth, it does make the debt far more risky.
最後,儘管稅務人員可能喜歡會計利潤,但貸款人只接受冷硬現金。因此,我們顯然需要研究該息稅前利潤是否會帶來相應的自由現金流。在過去的三年中,蘇州世景環境科技有限公司燒掉了大量現金。儘管這可能是增長支出的結果,但它確實使債務風險大大增加。
Our View
我們的觀點
Neither Suzhou Shijing Environmental TechnologyLtd's ability to convert EBIT to free cash flow nor its net debt to EBITDA gave us confidence in its ability to take on more debt. But its EBIT growth rate tells a very different story, and suggests some resilience. Taking the abovementioned factors together we do think Suzhou Shijing Environmental TechnologyLtd's debt poses some risks to the business. While that debt can boost returns, we think the company has enough leverage now. 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. For example Suzhou Shijing Environmental TechnologyLtd has 4 warning signs (and 3 which don't sit too well with us) we think you should know about.
蘇州世景環境科技有限公司將息稅前利潤轉換爲自由現金流的能力及其淨負債轉化爲息稅折舊攤銷前利潤的能力都沒有使我們對它承擔更多債務的能力充滿信心。但其息稅前利潤增長率卻是一個截然不同的故事,也表明了一定的彈性。綜合上述因素,我們確實認爲蘇州世景環境科技有限公司的債務對業務構成了一些風險。儘管這筆債務可以提高回報,但我們認爲該公司現在有足夠的槓桿作用。資產負債表顯然是分析債務時需要關注的領域。但歸根結底,每家公司都可以控制資產負債表之外存在的風險。例如,蘇州世景環境科技有限公司有4個警示標誌(其中3個對我們來說不太合適),我們認爲你應該知道。
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,通常最好將注意力集中在沒有淨負債的公司身上。您可以訪問我們的此類公司的特別名單(所有公司都有利潤增長記錄)。它是免費的。
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