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SYoung Group (SZSE:300740) Takes On Some Risk With Its Use Of Debt

SYoung Group (SZSE:300740) Takes On Some Risk With Its Use Of Debt

水羊股份(SZSE:300740)在債務使用方面承擔了一些風險
Simply Wall St ·  2024/11/15 21:29

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.' 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. We note that SYoung Group Co., Ltd. (SZSE:300740) does have debt on its balance sheet. But should shareholders be worried about its use of debt?

當大衛·伊本說'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,他表達得很好。因此,明智的資金知道,債務(通常與破產有關)是評估公司風險程度時非常重要的因素。我們注意到水羊股份有限公司(SZSE:300740)在資產負債表上確實有債務。但股東們應該擔心該公司使用債務嗎?

What Risk Does Debt Bring?

What Risk Does Debt Bring?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.

當企業無法輕鬆用自由現金流或以有吸引力的價格籌集資金來履行那些義務時,債務和其他負債會對企業產生風險。資本主義的一部分是「創造性破壞」的過程,在這個過程中,失敗的企業無情地被銀行家清算。雖然這不太常見,但我們經常看到負債累累的公司因爲借貸者強迫它們以困境價格籌集資本而永久性稀釋股東。然而,通過取代稀釋,債務可以成爲需要資金以高回報率投資增長的企業的極其有用的工具。在考慮企業使用多少債務時,第一件要做的事情是查看它的現金和債務。

What Is SYoung Group's Net Debt?

SYoung Group的淨債務是多少?

As you can see below, SYoung Group had CN¥1.52b of debt, at September 2024, which is about the same as the year before. You can click the chart for greater detail. However, because it has a cash reserve of CN¥437.4m, its net debt is less, at about CN¥1.08b.

正如以下所示,截至2024年9月,水羊股份的債務爲15.2億元人民幣,與前一年持平。您可以點擊圖表查看更詳細的信息。然而,由於其現金儲備爲43740萬元人民幣,因此其淨債務較少,約爲10.8億元人民幣。

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SZSE:300740 Debt to Equity History November 16th 2024
SZSE:300740債務與股本歷史數據,2024年11月16日

How Strong Is SYoung Group's Balance Sheet?

SYoung集團的資產負債表有多強?

According to the last reported balance sheet, SYoung Group had liabilities of CN¥820.5m due within 12 months, and liabilities of CN¥1.18b due beyond 12 months. Offsetting these obligations, it had cash of CN¥437.4m as well as receivables valued at CN¥505.8m due within 12 months. So it has liabilities totalling CN¥1.06b more than its cash and near-term receivables, combined.

根據最近公佈的資產負債表,SYoung集團有人民幣82050萬的到期負債,以及人民幣11.8億的超過12個月到期負債。 抵消這些義務,它有43740萬的現金以及50580萬的應收賬款在12個月內到期。 因此,它的負債總計爲10.6億,超過了其現金和短期應收賬款的合計。

While this might seem like a lot, it is not so bad since SYoung Group has a market capitalization of CN¥4.98b, and so it could probably strengthen its balance sheet by raising capital if it needed to. However, it is still worthwhile taking a close look at its ability to pay off debt.

雖然這可能看起來很多,但由於SYoung集團的市值爲49.8億,因此如果有需要,它可能通過增加資本來加強其資產負債表。 但是,仍然值得密切關注其償還債務的能力。

We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.

我們使用兩個主要的比率來告訴我們相對於收益的債務水平。第一個是淨債務除以利息、稅、折舊和攤銷前利潤(EBITDA),而第二個是其利潤前利息和稅(EBIT)覆蓋其利息費用的次數(或其利息覆蓋率,簡稱)。因此,我們考慮與折舊和攤銷費用相關的盈利以及沒有相關費用的盈利相對於債務水平。

SYoung Group has net debt to EBITDA of 2.8 suggesting it uses a fair bit of leverage to boost returns. On the plus side, its EBIT was 8.7 times its interest expense, and its net debt to EBITDA, was quite high, at 2.8. If SYoung Group can keep growing EBIT at last year's rate of 10% over the last year, then it will find its debt load easier to manage. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine SYoung Group's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.

SYoung集團的淨債務與EBITDA比爲2.8,表明它使用了相當大的槓桿來提高回報。 從積極的一面來看,其EBIT是其利息支出的8.7倍,其淨債務與EBITDA相當高,爲2.8。 如果SYoung集團能夠以去年10%的速度繼續增長EBIT,那麼它將發現更容易管理其債務負載。 毫無疑問,我們從資產負債表中最了解債務情況。 但相比任何其他因素,未來的收益將決定SYoung集團能否維持健康的資產負債表前行。 因此,如果您想了解專業人士的看法,您可能會發現這份關於分析師利潤預測的免費報告很有趣。

Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we always check how much of that EBIT is translated into free cash flow. Over the last three years, SYoung Group saw substantial negative free cash flow, in total. While that may be a result of expenditure for growth, it does make the debt far more risky.

最後,雖然稅務人員可能喜歡會計利潤,但貸款人只接受冰冷的現金。 因此,我們始終覈對這些EBIT中有多少被轉化爲自由現金流。 在過去三年中,SYoung集團的自由現金流大幅爲負。 儘管這可能是爲了增長開支,但這確實使得債務變得更加冒險。

Our View

我們的觀點

SYoung Group's conversion of EBIT to free cash flow was a real negative on this analysis, although the other factors we considered cast it in a significantly better light. But on the bright side, its ability to to cover its interest expense with its EBIT isn't too shabby at all. We think that SYoung Group's debt does make it a bit risky, after considering the aforementioned data points together. That's not necessarily a bad thing, since leverage can boost returns on equity, but it is something to be aware of. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. For example, we've discovered 2 warning signs for SYoung Group (1 is significant!) that you should be aware of before investing here.

水羊股份將EBIt轉換爲自由現金流的情況在這個分析中確實不太好,儘管我們考慮的其他因素使其光芒四射。但值得一提的是,水羊股份用其EBIt覆蓋利息支出的能力並不差。我們認爲水羊股份的債務情況確實使其有點風險,考慮到前述數據點的共同作用。這不一定是件壞事,因爲槓桿可以提高股本回報率,但這是需要注意的事項。毫無疑問,我們從資產負債表中了解債務情況最多。但最終,每家公司都可能包含超出資產負債表之外的風險。例如,我們已經發現了水羊股份的2個警示標誌(其中1個很重要!)你在投資之前應注意到這些。

If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.

如果在所有這些之後,您更感興趣的是具有堅實資產負債表的快速增長公司,那麼不要拖延,查看我們的淨現金增長股票列表。

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Simply Wall St的這篇文章是一般性質的。我們僅基於歷史數據和分析師預測提供評論,使用公正的方法,我們的文章並非意在提供財務建議。這並不構成買入或賣出任何股票的建議,並且不考慮您的目標或財務狀況。我們旨在爲您帶來基於基礎數據驅動的長期聚焦分析。請注意,我們的分析可能未考慮最新的價格敏感公司公告或定性材料。Simply Wall St對提及的任何股票都沒有持倉。

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