Warren Buffett famously said, 'Volatility is far from synonymous with risk.' 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 Dalian My Gym Education Technology Co.,Ltd. (SZSE:002621) does have debt on its balance sheet. But is this debt a concern to shareholders?
When Is Debt Dangerous?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. If things get really bad, the lenders can take control of the business. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. 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. When we think about a company's use of debt, we first look at cash and debt together.
Check out our latest analysis for Dalian My Gym Education TechnologyLtd
What Is Dalian My Gym Education TechnologyLtd's Debt?
The chart below, which you can click on for greater detail, shows that Dalian My Gym Education TechnologyLtd had CN¥309.1m in debt in September 2022; about the same as the year before. But on the other hand it also has CN¥960.5m in cash, leading to a CN¥651.4m net cash position.
SZSE:002621 Debt to Equity History December 15th 2022
A Look At Dalian My Gym Education TechnologyLtd's Liabilities
According to the last reported balance sheet, Dalian My Gym Education TechnologyLtd had liabilities of CN¥943.5m due within 12 months, and liabilities of CN¥416.1m due beyond 12 months. Offsetting this, it had CN¥960.5m in cash and CN¥236.9m in receivables that were due within 12 months. So it has liabilities totalling CN¥162.2m more than its cash and near-term receivables, combined.
Given Dalian My Gym Education TechnologyLtd has a market capitalization of CN¥3.91b, it's hard to believe these liabilities pose much threat. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse. While it does have liabilities worth noting, Dalian My Gym Education TechnologyLtd also has more cash than debt, so we're pretty confident it can manage its debt safely. There's no doubt that we learn most about debt from the balance sheet. But it is Dalian My Gym Education TechnologyLtd's earnings that will influence how the balance sheet holds up in the future. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.
Over 12 months, Dalian My Gym Education TechnologyLtd made a loss at the EBIT level, and saw its revenue drop to CN¥202m, which is a fall of 42%. To be frank that doesn't bode well.
So How Risky Is Dalian My Gym Education TechnologyLtd?
We have no doubt that loss making companies are, in general, riskier than profitable ones. And we do note that Dalian My Gym Education TechnologyLtd had an earnings before interest and tax (EBIT) loss, over the last year. Indeed, in that time it burnt through CN¥19m of cash and made a loss of CN¥316m. With only CN¥651.4m on the balance sheet, it would appear that its going to need to raise capital again soon. Summing up, we're a little skeptical of this one, as it seems fairly risky in the absence of free cashflow. 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. Be aware that Dalian My Gym Education TechnologyLtd is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
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.
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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.
巴菲特(Warren Buffett)曾説過一句名言:波動性遠非風險的代名詞。當我們考慮一家公司的風險有多大時,我們總是喜歡看它對債務的使用,因為債務過重可能導致破產。我們注意到大連我的健身房教育科技有限公司(SZSE:002621)的資產負債表上確實有債務。但這筆債務對股東來説是一個擔憂嗎?
債務在什麼時候是危險的?
一般來説,只有當一家公司無法輕鬆償還債務時,債務才會成為一個真正的問題,無論是通過籌集資金還是用自己的現金流。如果情況真的變得很糟糕,貸款人可以控制業務。然而,更常見(但代價仍然高昂)的情況是,一家公司必須以極低的價格發行股票,永久性地稀釋股東的股份,只是為了支撐其資產負債表。然而,通過取代稀釋,對於需要資本投資於高回報率增長的企業來説,債務可以成為一個非常好的工具。當我們考慮一家公司的債務用途時,我們首先會把現金和債務放在一起看。
查看我們對大連我的健身房教育科技有限公司的最新分析
大連我的健身房教育科技有限公司的債務是什麼?
下面的圖表,你可以點擊查看更多細節,顯示大連我的健身房教育科技有限公司在2022年9月負債3.091億元人民幣,與前一年大致相同。但另一方面,它也有9.605億新元的現金,導致6.514億新元的淨現金頭寸。
深交所:002621債轉股歷史2022年12月15日
大連我的健身房教育科技有限公司的負債問題
根據最新報告的資產負債表,大連我的健身房教育科技有限公司有9.435億加元的負債在12個月內到期,4.161億加元的負債在12個月後到期。作為抵消,它有9.605億加元的現金和2.369億加元的應收賬款在12個月內到期。因此,它的負債總額比現金和近期應收賬款加起來還要多1.622億元。
鑑於大連我的健身房教育科技有限公司的市值為39.1億元人民幣,很難相信這些債務會構成如此大的威脅。話雖如此,很明顯,我們應該繼續監控它的資產負債表,以免它變得更糟。雖然大連我的健身房教育科技有限公司確實有值得注意的負債,但它的現金也多於債務,所以我們非常有信心它能夠安全地管理債務。毫無疑問,我們從資產負債表中瞭解到的債務最多。但大連我的健身房教育科技有限公司的收益將影響未來資產負債表的表現。因此,如果你熱衷於瞭解更多關於它的收益,可能值得查看一下它的長期收益趨勢圖。
12個月來,大連我的健身房教育科技有限公司息税前利潤出現虧損,收入下降至2.02億元,降幅為42%。坦率地説,這不是一個好兆頭。
那麼,大連我的健身房教育科技有限公司的風險有多大?
我們毫不懷疑,總的來説,虧損公司比盈利公司風險更大。我們確實注意到,大連我的健身房教育科技有限公司在過去一年中出現了息税前收益(EBIT)虧損。事實上,在此期間,它燒掉了1900萬元人民幣的現金,虧損了3.16億元人民幣。在資產負債表上只有6.514億加元的情況下,它似乎很快就需要再次籌集資金。總而言之,我們對這一點持懷疑態度,因為在沒有自由現金流的情況下,它似乎有相當大的風險。毫無疑問,我們從資產負債表中瞭解到的債務最多。然而,並非所有投資風險都存在於資產負債表中--遠非如此。請注意,大連我的健身房教育科技有限公司正在展示我們的投資分析中的2個警告信號,其中一條有點令人不快...
如果你有興趣投資於可以在沒有債務負擔的情況下增長利潤的企業,那麼看看這個免費資產負債表上有淨現金的成長型企業名單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。