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Jewett-Cameron Trading's (NASDAQ:JCTC.F) Conservative Accounting Might Explain Soft Earnings

Jewett-Cameron Trading's (NASDAQ:JCTC.F) Conservative Accounting Might Explain Soft Earnings

Jewett-Cameron Trading(納斯達克股票代碼:JCTC.F)的保守會計可能會解釋疲軟收益
Simply Wall St ·  01/26 07:38

Investors weren't pleased with the recent soft earnings report from Jewett-Cameron Trading Company Ltd. (NASDAQ:JCTC.F). Our analysis suggests that while the headline numbers were soft, there are some positive factors which shareholders may have missed.

投資者對Jewett-Cameron貿易有限公司(納斯達克股票代碼:JCTC.F)最近的疲軟收益報告不滿意。我們的分析表明,儘管總體數據疲軟,但股東可能錯過了一些積極因素。

See our latest analysis for Jewett-Cameron Trading

查看我們對Jewett-Cameron Trading的最新分析

earnings-and-revenue-history
NasdaqCM:JCTC.F Earnings and Revenue History January 26th 2024
NasdaqCM: JCTC.F 2024 年 1 月 26 日的收益和收入歷史記錄

Examining Cashflow Against Jewett-Cameron Trading's Earnings

根據Jewett-Cameron Trading的收益研究現金流

Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.

許多投資者還沒有聽說過現金流的應計比率,但它實際上是衡量公司在給定時期內自由現金流(FCF)在多大程度上支持利潤的有用指標。簡而言之,該比率從淨利潤中減去FCF,然後將該數字除以該時期公司的平均運營資產。你可以將現金流的應計比率視爲 “非FCF利潤率”。

As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".

因此,負應計比率對公司來說是正數,而正應計比率是負數。雖然正應計比率表明非現金利潤達到一定水平不是問題,但高應計比率可以說是一件壞事,因爲它表明紙面利潤與現金流不匹配。引用Lewellen和Resutek在2014年發表的一篇論文,“應計額較高的公司將來的利潤往往會降低”。

For the year to November 2023, Jewett-Cameron Trading had an accrual ratio of -0.31. Therefore, its statutory earnings were very significantly less than its free cashflow. To wit, it produced free cash flow of US$9.2m during the period, dwarfing its reported profit of US$1.34m. Given that Jewett-Cameron Trading had negative free cash flow in the prior corresponding period, the trailing twelve month resul of US$9.2m would seem to be a step in the right direction. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part.

在截至2023年11月的一年中,Jewett-Cameron Trading的應計比率爲-0.31。因此,其法定收入大大低於其自由現金流。換句話說,它在此期間產生了920萬美元的自由現金流,使其報告的134萬美元利潤相形見絀。鑑於Jewett-Cameron Trading在前一同期的自由現金流爲負,過去十二個月的920萬美元業績似乎是朝着正確方向邁出的一步。但是,這還不是要考慮的全部。應計比率至少部分反映了不尋常項目對法定利潤的影響。

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Jewett-Cameron Trading.

注意:我們始終建議投資者檢查資產負債表的實力。點擊此處查看我們對Jewett-Cameron Trading的資產負債表分析。

The Impact Of Unusual Items On Profit

不尋常物品對利潤的影響

Surprisingly, given Jewett-Cameron Trading's accrual ratio implied strong cash conversion, its paper profit was actually boosted by US$2.6m in unusual items. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's as you'd expect, given these boosts are described as 'unusual'. Jewett-Cameron Trading had a rather significant contribution from unusual items relative to its profit to November 2023. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.

令人驚訝的是,鑑於Jewett-Cameron Trading的應計比率暗示着強勁的現金轉換,其票面利潤實際上是由260萬美元的不尋常項目提振的。雖然我們希望看到利潤增加,但當不尋常的物品做出重大貢獻時,我們往往會更加謹慎一些。當我們分析全球絕大多數上市公司時,我們發現重大不尋常的事項往往不會重演。這正如你所預料的那樣,因爲這些增強被描述爲 “不尋常”。截至2023年11月,Jewett-Cameron Trading從不尋常的項目中獲得了相當大的利潤。因此,我們可以推測,這些不尋常的物品使其法定利潤明顯高於原來的水平。

Our Take On Jewett-Cameron Trading's Profit Performance

我們對Jewett-Cameron Trading利潤表現的看法

Jewett-Cameron Trading's profits got a boost from unusual items, which indicates they might not be sustained and yet its accrual ratio still indicated solid cash conversion, which is promising. Based on these factors, it's hard to tell if Jewett-Cameron Trading's profits are a reasonable reflection of its underlying profitability. If you'd like to know more about Jewett-Cameron Trading as a business, it's important to be aware of any risks it's facing. Our analysis shows 3 warning signs for Jewett-Cameron Trading (1 is a bit concerning!) and we strongly recommend you look at these before investing.

不尋常的項目提振了Jewett-Cameron Trading的利潤,這表明利潤可能無法持續下去,但其應計比率仍然顯示出穩健的現金轉換,這令人鼓舞。基於這些因素,很難判斷Jewett-Cameron Trading的利潤是否合理地反映了其潛在的盈利能力。如果您想進一步了解Jewett-Cameron Trading作爲一家企業,請務必了解其面臨的任何風險。我們的分析顯示 Jewett-Cameron Trading 有 3 個警告信號(1 個有點令人擔憂!)我們強烈建議您在投資之前先看看這些。

Our examination of Jewett-Cameron Trading has focussed on certain factors that can make its earnings look better than they are. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying to be useful.

我們對Jewett-Cameron Trading的審查側重於某些可能使其收益看起來好於實際的因素。但是,還有很多其他方法可以讓你對公司的看法。例如,許多人認爲高股本回報率是有利的商業經濟的標誌,而另一些人則喜歡 “關注資金”,尋找內部人士正在買入的股票。雖然可能需要你進行一些研究,但你可能會發現這份免費收集的擁有高股本回報率的公司,或者這份內部人士正在購買的股票清單很有用。

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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。

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