Does West Pharmaceutical Services (NYSE:WST) Have A Healthy Balance Sheet?
Does West Pharmaceutical Services (NYSE:WST) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' 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. Importantly, West Pharmaceutical Services, Inc. (NYSE:WST) does carry debt. But is this debt a concern to shareholders?
霍華德·馬克斯說得很好,他說:“我擔心的是永久虧損的可能性... 我認識的每位務實投資者都很擔心,而不是擔心股價的波動。”當我們考慮一家公司的風險時,我們總是喜歡看它對債務的使用,因爲債務超負荷可能導致破產。重要的是,西部製藥服務公司(紐約證券交易所代碼:WST)確實有債務。但是這筆債務是股東關心的問題嗎?
When Is Debt Dangerous?
債務何時危險?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
債務爲企業提供幫助,直到企業難以用新的資本或自由現金流還清債務。最終,如果公司無法履行償還債務的法律義務,股東可能一無所有地離開。但是,更常見(但仍然昂貴)的情況是,公司必須以低廉的股價稀釋股東,這樣才能控制債務。當然,債務可能是企業的重要工具,尤其是資本密集型企業。在考慮企業使用多少債務時,要做的第一件事是將其現金和債務放在一起考慮。
See our latest analysis for West Pharmaceutical Services
查看我們對西部製藥服務的最新分析
How Much Debt Does West Pharmaceutical Services Carry?
西方製藥服務公司揹負多少債務?
The chart below, which you can click on for greater detail, shows that West Pharmaceutical Services had US$207.3m in debt in September 2023; about the same as the year before. But it also has US$898.6m in cash to offset that, meaning it has US$691.3m net cash.
您可以點擊下圖了解更多詳細信息,該圖表顯示,西部製藥服務在2023年9月有2.073億美元的債務;與前一年大致相同。但它也有8.986億美元的現金可以抵消這一點,這意味着它有6.913億美元的淨現金。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231206/0-a4c4ab772eb354c8c80e14b68c98b7ab-0-a2b538e88a23afbac6c616d810f7e972.png/big)
A Look At West Pharmaceutical Services' Liabilities
看看西方製藥服務的負債
We can see from the most recent balance sheet that West Pharmaceutical Services had liabilities of US$533.5m falling due within a year, and liabilities of US$353.0m due beyond that. On the other hand, it had cash of US$898.6m and US$539.0m worth of receivables due within a year. So it can boast US$551.1m more liquid assets than total liabilities.
我們可以從最新的資產負債表中看出,西部製藥服務的負債爲5.335億美元,此後到期的負債爲3.530億美元。另一方面,它在一年內有8.986億美元的現金和價值5.39億美元的應收賬款。因此,它的流動性資產可以比 5.511 億美元多 總 負債。
This surplus suggests that West Pharmaceutical Services has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that West Pharmaceutical Services has more cash than debt is arguably a good indication that it can manage its debt safely.
這種盈餘表明,西方製藥服務公司的資產負債表比較保守,很可能可以毫不費力地消除債務。簡而言之,西方製藥服務公司的現金多於債務這一事實可以說很好地表明它可以安全地管理債務。
While West Pharmaceutical Services doesn't seem to have gained much on the EBIT line, at least earnings remain stable for now. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine West Pharmaceutical Services's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
儘管西方製藥服務公司在息稅前利潤方面似乎沒有取得太大收益,但至少目前收益保持穩定。資產負債表顯然是分析債務時需要關注的領域。但是,未來的收益,比什麼都重要,將決定西部製藥服務公司未來維持健康資產負債表的能力。因此,如果你專注於未來,你可以查看這份顯示分析師利潤預測的免費報告。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. West Pharmaceutical Services 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 most recent three years, West Pharmaceutical Services recorded free cash flow worth 53% 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.
但是我們的最終考慮因素也很重要,因爲公司無法用紙面利潤償還債務;它需要冷硬現金。West Pharmaceary Services的資產負債表上可能有淨現金,但看看該企業如何將其息稅前收益(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債務的能力。在最近三年中,西部製藥服務公司的自由現金流佔其息稅前收益的53%,鑑於自由現金流不包括利息和稅收,這基本處於正常水平。這種自由現金流使公司能夠在適當的時候償還債務。
Summing Up
總結
While we empathize with investors who find debt concerning, you should keep in mind that West Pharmaceutical Services has net cash of US$691.3m, as well as more liquid assets than liabilities. So we are not troubled with West Pharmaceutical Services's debt use. Over time, share prices tend to follow earnings per share, so if you're interested in West Pharmaceutical Services, you may well want to click here to check an interactive graph of its earnings per share history.
儘管我們同情那些認爲債務相關的投資者,但您應該記住,西部製藥服務公司的淨現金爲6.913億美元,流動資產也多於負債。因此,我們對西方製藥服務的債務使用並不感到困擾。隨着時間的推移,股價往往會跟隨每股收益,因此,如果你對西方製藥服務感興趣,不妨點擊此處查看其每股收益歷史的交互式圖表。
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.
畢竟,如果你對一家資產負債表堅如磐石的快速成長型公司更感興趣,那麼請立即查看我們的淨現金增長股票清單。
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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。