Here's Why H World Group (NASDAQ:HTHT) Can Manage Its Debt Responsibly
Here's Why H World Group (NASDAQ:HTHT) Can Manage Its Debt Responsibly
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.' 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 H World Group Limited (NASDAQ:HTHT) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?
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。」當我們思考一家公司的風險有多大時,我們總是喜歡考慮其債務的用途,因爲債務過載可能導致破產。我們注意到,H World Group Limited(納斯達克股票代碼:HTHT)的資產負債表上確實有債務。但更重要的問題是:這筆債務會帶來多大的風險?
When Is Debt A Problem?
債務何時會成爲問題?
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. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. 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。儘管這種情況並不常見,但我們經常會看到負債公司永久稀釋股東,因爲貸款人迫使他們以不良价格籌集資金。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。當我們檢查債務水平時,我們首先要同時考慮現金和債務水平。
How Much Debt Does H World Group Carry?
H World Group 揹負了多少債務?
The image below, which you can click on for greater detail, shows that H World Group had debt of CN¥5.54b at the end of June 2024, a reduction from CN¥5.83b over a year. But on the other hand it also has CN¥8.91b in cash, leading to a CN¥3.38b net cash position.
您可以點擊下圖查看更多詳情,該圖片顯示,截至2024年6月底,H World集團的債務爲55.4元人民幣,較一年內的58.3元人民幣有所減少。但另一方面,它也有89.1元人民幣的現金,淨現金狀況爲33.8元人民幣。
![1724332115431](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240822/42737949-0-116511612a0a49d7b2bab61ab44a27b4.webp/bigjpg)
A Look At H World Group's Liabilities
看看 H World 集團的負債
Zooming in on the latest balance sheet data, we can see that H World Group had liabilities of CN¥11.9b due within 12 months and liabilities of CN¥37.9b due beyond that. Offsetting these obligations, it had cash of CN¥8.91b as well as receivables valued at CN¥1.26b due within 12 months. So its liabilities total CN¥39.6b more than the combination of its cash and short-term receivables.
放大最新的資產負債表數據,我們可以看到,H World Group的負債爲119元人民幣,12個月後到期的負債爲379元人民幣。除這些債務外,它有89.1元人民幣的現金以及價值12.6元人民幣的應收賬款將在12個月內到期。因此,其負債總額比其現金和短期應收賬款的總額高出396元人民幣。
This is a mountain of leverage relative to its market capitalization of CN¥61.9b. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet in a hurry. While it does have liabilities worth noting, H World Group also has more cash than debt, so we're pretty confident it can manage its debt safely.
相對於其619元人民幣的市值,這是一座巨大的槓桿率。這表明,如果公司需要迅速支撐資產負債表,股東將被嚴重稀釋。儘管H世界集團確實有值得注意的負債,但其現金也多於債務,因此我們非常有信心它可以安全地管理債務。
Better yet, H World Group grew its EBIT by 114% last year, which is an impressive improvement. That boost will make it even easier to pay down debt going forward. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if H World Group 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.
更好的是,H World集團去年的息稅前利潤增長了114%,這是一個令人印象深刻的改善。這種提振將使未來償還債務變得更加容易。在分析債務水平時,資產負債表是顯而易見的起點。但最終,該業務的未來盈利能力將決定H World Group能否隨着時間的推移加強其資產負債表。因此,如果你想看看專業人士的想法,你可能會發現這份關於分析師利潤預測的免費報告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. H World Group may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. Over the last two years, H World Group actually produced more free cash flow than EBIT. That sort of strong cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.
但是我們最終的考慮因素也很重要,因爲公司無法用紙面利潤來償還債務;它需要冷硬現金。H World Group的資產負債表上可能有淨現金,但看看該企業如何將其利息稅前收益(EBIT)轉換爲自由現金流仍然很有趣,因爲這將影響其對債務的需求和管理能力。在過去的兩年中,H World Group產生的自由現金流實際上超過了息稅前利潤。當Daft Punk音樂會的節拍下降時,這種強勁的現金轉換讓我們和觀衆一樣興奮。
Summing Up
總結
While H World Group does have more liabilities than liquid assets, it also has net cash of CN¥3.38b. And it impressed us with free cash flow of CN¥5.7b, being 135% of its EBIT. So we don't think H World Group's use of debt is risky. 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, we've discovered 1 warning sign for H World Group that you should be aware of before investing here.
儘管H World集團的負債確實多於流動資產,但其淨現金也爲33.8元人民幣。它以57元人民幣的自由現金流給我們留下了深刻的印象,佔其息稅前利潤的135%。因此,我們認爲H World Group使用債務沒有風險。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,我們發現了H World Group的1個警告信號,在這裏投資之前,您應該注意這一點。
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.
如果你有興趣投資能夠在沒有債務負擔的情況下增加利潤的企業,請查看這份資產負債表上有淨現金的成長型企業的免費清單。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。