Here's Why We're Watching LiveWire Group's (NYSE:LVWR) Cash Burn Situation
Here's Why We're Watching LiveWire Group's (NYSE:LVWR) Cash Burn Situation
There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.
毫無疑問,擁有不盈利企業的股份可以賺錢。例如,軟件即服務業務Salesforce.com 在增加經常性收入的過程中虧損多年,但如果您持有自2005年以來的股票,您的投資收益將會非常可觀。儘管如此,虧損企業存在風險,因爲它們有可能燃燒所有現金並陷入困境。
So should LiveWire Group (NYSE:LVWR) shareholders be worried about its cash burn? For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.
那麼,LiveWire Group(紐交所:LVWR)的股東們應該擔心其現金燃燒嗎?本文所指的現金燃燒是指一家虧損公司花費現金以資助其增長的年度速率;其自由現金流爲負數。第一步是將其現金燃燒與現金儲備進行比較,得出我們的「現金跑道」。
When Might LiveWire Group Run Out Of Money?
LiveWire Group何時將用完錢?
A company's cash runway is calculated by dividing its cash hoard by its cash burn. When LiveWire Group last reported its June 2024 balance sheet in August 2024, it had zero debt and cash worth US$113m. Looking at the last year, the company burnt through US$102m. So it had a cash runway of approximately 13 months from June 2024. While that cash runway isn't too concerning, sensible holders would be peering into the distance, and considering what happens if the company runs out of cash. Depicted below, you can see how its cash holdings have changed over time.
公司的現金跑道是通過將其現金儲備除以其現金燃燒而計算出來的。當LiveWire Group在2024年6月報告其2024年6月資產負債表時,在2024年8月,其沒有債務,現金價值爲11300萬美元。看一看過去一年,該公司燒掉了10200萬美元。因此它在2024年6月前後有大約13個月的現金跑道。雖然這個現金跑道不是太令人擔憂,但明智的持有人將會眺望遠方,並考慮公司如果用盡現金會發生什麼。下面描繪了其現金持有情況的變化情況。
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How Well Is LiveWire Group Growing?
LiveWire Group的增長如何?
On balance, we think it's mildly positive that LiveWire Group trimmed its cash burn by 7.5% over the last twelve months. Unfortunately, however, operating revenue declined by 10% during the period. In light of the data above, we're fairly sanguine about the business growth trajectory. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.
總的來說,我們認爲,在過去的十二個月中,LiveWire Group將其現金燃燒率降低了7.5%是相對積極的。不幸的是,在這一時期內,運營收入下降了10%。鑑於上述數據,我們對公司的業務增長軌跡相當樂觀。但是,關鍵是公司未來是否會擴大業務規模。因此,看一看我們的分析師對該公司的預測是非常有意義的。
How Hard Would It Be For LiveWire Group To Raise More Cash For Growth?
LiveWire Group爲了擴大業務,籌集更多資金會有多困難?
Even though it seems like LiveWire Group is developing its business nicely, we still like to consider how easily it could raise more money to accelerate growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Commonly, a business will sell new shares in itself to raise cash and drive growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).
即使似乎LiveWire Group的業務發展得很好,我們仍然希望考慮其如何輕鬆籌集更多資金來加速增長。發行新股或負債是上市公司籌集更多資金的最常見方式。通常,一家企業會向自己銷售新股以籌集資金推動增長。通過將公司的年度現金燃燒與其總市值進行比較,我們可以大致估計公司需要發行多少股票才能在另一年運營(以相同的燃燒率)。
Since it has a market capitalisation of US$1.3b, LiveWire Group's US$102m in cash burn equates to about 7.7% of its market value. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money.
由於其市值爲13億美元,LiveWire Group的1.02億美元現金燃燒相當於其市值的約7.7%。這個數字比較低,因此我們認爲公司將能夠籌集更多資金以推動增長,稍作稀釋,甚至只需借一些錢。
How Risky Is LiveWire Group's Cash Burn Situation?
LiveWire Group的現金燃燒情況有多大風險?
On this analysis of LiveWire Group's cash burn, we think its cash burn relative to its market cap was reassuring, while its falling revenue has us a bit worried. Cash burning companies are always on the riskier side of things, but after considering all of the factors discussed in this short piece, we're not too worried about its rate of cash burn. On another note, LiveWire Group has 2 warning signs (and 1 which can't be ignored) we think you should know about.
就LiveWire Group的現金燃燒分析而言,我們認爲其現金燃燒相對於其市值是令人放心的,而營收下降讓我們有些擔憂。燒現金的企業總是處於風險旁邊,但是在考慮到本文討論的所有因素之後,我們並不太擔心其現金燃燒率。另外,LiveWire Group還有兩個警示標誌(1個不可忽視),我們認爲您應該知道。
Of course LiveWire Group may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
當然,LiveWire Group可能不是最好的股票買入選擇。因此,您可能希望查看這些具有高ROE的公司的免費收藏,或者查看具有高內部持股的股票列表。
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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。