Is Textron (NYSE:TXT) Using Too Much Debt?
Is Textron (NYSE:TXT) Using Too Much Debt?
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. We note that Textron Inc. (NYSE:TXT) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?
當David Iben說'波動性不是我們關心的風險。我們關心的是避免永久性的資本損失。'時,他說得很好。當我們思考一家公司有多大的風險時,我們總是會喜歡看它的債務使用,因爲債務負擔過重可能會導致災難。我們注意到 Textron公司 (NYSE:TXT) 在其資產負債表上確實有債務。但更重要的問題是:這些債務產生了多大的風險?
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. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. 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.
債務是幫助企業增長的工具,但如果企業無力償還債權人,則存在於其掌控之下。在最壞的情況下,如果企業無法償還債權人,它可能會破產。然而,更常見的(但仍然痛苦的)情況是,它必須以較低的價格籌集新的股權資本,從而永久稀釋股東。當我們檢查債務水平時,我們首先考慮現金和債務水平的總和。
What Is Textron's Debt?
Textron的債務是什麼?
As you can see below, Textron had US$3.58b of debt, at June 2024, which is about the same as the year before. You can click the chart for greater detail. However, it does have US$1.35b in cash offsetting this, leading to net debt of about US$2.24b.
如下所示,截至2024年6月,Textron的債務爲35.8億美元,與前一年相同。你可以點擊圖表查看更多細節。但是,其有13.5億美元的現金抵消了這一點,導致淨債務約爲22.4億美元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240814/0-60d07893b2a4c22a737cd6fa35c7cb98-0-00c5e44d77a6edd1b9e305690333fc02.png/big)
A Look At Textron's Liabilities
看看Textron的負債狀況
We can see from the most recent balance sheet that Textron had liabilities of US$4.46b falling due within a year, and liabilities of US$5.12b due beyond that. Offsetting this, it had US$1.35b in cash and US$847.0m in receivables that were due within 12 months. So it has liabilities totalling US$7.38b more than its cash and near-term receivables, combined.
我們可以從最近的資產負債表中看到,Textron有446億美元的短期債務到期,超過一年到期的債務爲512億美元。抵消這些,它擁有13.5億美元的現金和84700萬美元的應收賬款。因此,它的負債總額超過了現金和短期應收賬款合計738億美元。
While this might seem like a lot, it is not so bad since Textron has a huge market capitalization of US$15.9b, and so it could probably strengthen its balance sheet by raising capital if it needed to. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
雖然這聽起來很多,但並不那麼糟糕,因爲Textron的市值達到了159億美元,因此如果需要,它可以通過籌集資金來加強資產負債表。但很明顯,我們應該仔細檢查它是否能夠管理其債務而不進行稀釋。
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。
Textron has a low net debt to EBITDA ratio of only 1.3. And its EBIT easily covers its interest expense, being 20.4 times the size. So you could argue it is no more threatened by its debt than an elephant is by a mouse. And we also note warmly that Textron grew its EBIT by 14% last year, making its debt load easier to handle. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Textron 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.
Textron的淨債務/EBITDA比率僅有1.3。而且它的EBIT遠遠超過其利息費用,規模爲20.4倍。因此,你可以認爲它受到的債務威脅不比大象受到老鼠的威脅更大。而且我們也熱情地注意到,Textron去年的EBIT增長了14%,這使其承受債務負擔更加容易。在分析債務水平時,資產負債表是明顯的起點。但是,最終業務的未來盈利能力將決定Textron是否能夠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 the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. Over the most recent three years, Textron recorded free cash flow worth 79% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This free cash flow puts the company in a good position to pay down debt, when appropriate.
但是我們最後的考慮也很重要,因爲公司無法用虛假的收益來償還債務;它需要有現金。因此,邏輯的下一步是查看該EBIT中與實際自由現金流相匹配的比例。在最近的三年中,Textron記錄的自由現金流價值爲其EBIT的79%,這在正常情況下是可以的,因爲自由現金流不包括利息和稅收。這種自由現金流使得公司在適當時支付債務的位置很好。
Our View
我們的觀點
The good news is that Textron's demonstrated ability to cover its interest expense with its EBIT delights us like a fluffy puppy does a toddler. But, on a more sombre note, we are a little concerned by its level of total liabilities. Taking all this data into account, it seems to us that Textron takes a pretty sensible approach to debt. While that brings some risk, it can also enhance returns for shareholders. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. These risks can be hard to spot. Every company has them, and we've spotted 1 warning sign for Textron you should know about.
好消息是Textron已經展示了它利用其EBIT支付利息的能力,這使我們像毛絨狗一樣高興。但是,更令我們有些擔心的是其全部負債水平。考慮所有這些數據後,我們認爲Textron對待債務採取了相當明智的做法。雖然這帶來了一些風險,但也可以提高股東的回報。毫無疑問,我們從資產負債表上了解到了公司的大部分債務。但不是所有的投資風險都存在於資產負債表上。這些風險很難發現。每家公司都有它們,而我們已經注意到Textron 的一個警告標誌。你應該知道。
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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