Here's Why WuXi Xinje ElectricLtd (SHSE:603416) Can Manage Its Debt Responsibly
Here's Why WuXi Xinje ElectricLtd (SHSE:603416) Can Manage Its Debt Responsibly
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' 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 WuXi Xinje Electric Co.,Ltd. (SHSE:603416) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
禾倫·巴菲特曾說過一句名言:“波動性遠非風險的代名詞。”因此,當你評估公司的風險時,看來聰明的貨幣知道債務(通常涉及破產)是一個非常重要的因素。我們注意到,無錫信捷電氣有限公司, Ltd.(上海證券交易所股票代碼:603416)的資產負債表上確實有債務。但是,股東是否應該擔心其債務的使用?
When Is Debt A Problem?
債務何時會成爲問題?
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. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first step when considering a company's debt levels is to consider its cash and debt together.
當企業無法通過自由現金流或以誘人的價格籌集資金來輕鬆履行這些義務時,債務和其他負債就會成爲風險。資本主義的組成部分是 “創造性破壞” 過程,在這種過程中,倒閉的企業被銀行家無情地清算。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,許多公司使用債務爲增長提供資金,而不會產生任何負面影響。考慮公司的債務水平的第一步是同時考慮其現金和債務。
How Much Debt Does WuXi Xinje ElectricLtd Carry?
無錫信捷電氣有限公司揹負了多少債務?
As you can see below, at the end of September 2023, WuXi Xinje ElectricLtd had CN¥111.5m of debt, up from none a year ago. Click the image for more detail. But it also has CN¥1.26b in cash to offset that, meaning it has CN¥1.15b net cash.
如下圖所示,截至2023年9月底,無錫信捷電氣有限公司的債務爲1.115億元人民幣,高於去年同期的零。點擊圖片查看更多細節。但它也有12.6億元的現金來抵消這一點,這意味着它有11.5億元的淨現金。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240225/0-687099037199e25312bb3681f219caf4-0-f3ae94c7dc4ce542c5db5645097d8fa4.png/big)
How Healthy Is WuXi Xinje ElectricLtd's Balance Sheet?
無錫信捷電氣有限公司的資產負債表有多健康?
According to the last reported balance sheet, WuXi Xinje ElectricLtd had liabilities of CN¥894.8m due within 12 months, and liabilities of CN¥33.2m due beyond 12 months. Offsetting this, it had CN¥1.26b in cash and CN¥386.7m in receivables that were due within 12 months. So it can boast CN¥720.8m more liquid assets than total liabilities.
根據上次報告的資產負債表,無錫信捷電氣有限公司的負債爲8.948億元人民幣,12個月以後到期的負債爲3320萬元人民幣。與此相抵消的是,它有12.6億元人民幣的現金和3.867億元人民幣的應收賬款將在12個月內到期。因此,它擁有的流動資產可以多出7.208億元人民幣 總 負債。
This excess liquidity suggests that WuXi Xinje ElectricLtd is taking a careful approach to debt. Due to its strong net asset position, it is not likely to face issues with its lenders. Simply put, the fact that WuXi Xinje ElectricLtd has more cash than debt is arguably a good indication that it can manage its debt safely.
這種過剩的流動性表明無錫信捷電氣有限公司對債務採取了謹慎的態度。由於其強大的淨資產狀況,它不太可能面臨貸款人的問題。簡而言之,無錫信捷電氣有限公司的現金多於債務,這一事實可以說是一個很好的跡象,表明它可以安全地管理債務。
The good news is that WuXi Xinje ElectricLtd has increased its EBIT by 9.3% over twelve months, which should ease any concerns about debt repayment. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if WuXi Xinje ElectricLtd can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
好消息是,無錫信捷電氣有限公司在十二個月內將其息稅前利潤增長了9.3%,這應該可以緩解對債務償還的任何擔憂。毫無疑問,我們從資產負債表中學到的關於債務的知識最多。但最終,該業務未來的盈利能力將決定無錫信捷電氣有限公司能否隨着時間的推移加強其資產負債表。因此,如果您專注於未來,可以查看這份顯示分析師利潤預測的免費報告。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. WuXi Xinje ElectricLtd 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. Looking at the most recent three years, WuXi Xinje ElectricLtd recorded free cash flow of 48% of its EBIT, which is weaker than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness.
最後,企業需要自由現金流來償還債務;會計利潤根本無法減少債務。無錫信捷電氣有限公司的資產負債表上可能有淨現金,但研究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。從最近三年來看,無錫信捷電氣有限公司的自由現金流佔其息稅前利潤的48%,低於我們的預期。這種疲軟的現金轉換使得處理債務變得更加困難。
Summing Up
總結
While we empathize with investors who find debt concerning, you should keep in mind that WuXi Xinje ElectricLtd has net cash of CN¥1.15b, as well as more liquid assets than liabilities. On top of that, it increased its EBIT by 9.3% in the last twelve months. So is WuXi Xinje ElectricLtd's debt a risk? It doesn't seem so to us. Above most other metrics, we think its important to track how fast earnings per share is growing, if at all. If you've also come to that realization, you're in luck, because today you can view this interactive graph of WuXi Xinje ElectricLtd's earnings per share history for free.
雖然我們同情那些認爲債務令人擔憂的投資者,但您應該記住,無錫信捷電氣有限公司的淨現金爲11.5億元人民幣,流動資產也多於負債。最重要的是,它在過去十二個月中將息稅前利潤增長了9.3%。那麼無錫信捷電氣有限公司的債務是一種風險嗎?在我們看來,情況並非如此。除了大多數其他指標外,我們認爲追蹤每股收益的增長速度非常重要。如果你也意識到了這一點,那你很幸運,因爲今天你可以免費查看無錫信捷電氣有限公司每股收益歷史的互動圖表。
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
歸根結底,通常最好將注意力集中在沒有淨負債的公司身上。您可以訪問我們的此類公司的特別名單(所有公司都有利潤增長記錄)。它是免費的。
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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。