Baker Technology's (SGX:BTP) Soft Earnings Are Actually Better Than They Appear
Baker Technology's (SGX:BTP) Soft Earnings Are Actually Better Than They Appear
The market was pleased with the recent earnings report from Baker Technology Limited (SGX:BTP), despite the profit numbers being soft. Our analysis suggests that investors may have noticed some promising signs beyond the statutory profit figures.
儘管利潤數字疲軟,但市場對貝克科技有限公司(新加坡證券交易所股票代碼:BTP)最近的收益報告感到滿意。我們的分析表明,除了法定利潤數字外,投資者可能已經注意到一些令人鼓舞的跡象。
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A Closer Look At Baker Technology's Earnings
仔細看看貝克科技的收益
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow.
用於衡量公司將其利潤轉換爲自由現金流(FCF)的情況的一個關鍵財務比率是應計比率。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。這個比率告訴我們,一家公司的利潤中有多少沒有自由現金流的支持。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
這意味着負應計比率是一件好事,因爲它表明該公司帶來的自由現金流超出了其利潤所暗示的範圍。儘管應計比率高於零並不令人擔憂,但我們確實認爲,當公司的應計比率相對較高時,值得注意。那是因爲一些學術研究表明,高應計比率往往會導致利潤下降或利潤增長放緩。
Baker Technology has an accrual ratio of -0.11 for the year to December 2023. That indicates that its free cash flow was a fair bit more than its statutory profit. In fact, it had free cash flow of S$26m in the last year, which was a lot more than its statutory profit of S$8.29m. Baker Technology shareholders are no doubt pleased that free cash flow improved over the last twelve months. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part.
截至2023年12月的一年中,貝克科技的應計比率爲-0.11。這表明其自由現金流遠超過其法定利潤。實際上,它去年的自由現金流爲2600萬新元,遠遠超過其829萬新元的法定利潤。貝克科技的股東們無疑對過去十二個月自由現金流的改善感到高興。話雖如此,故事還有更多。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 Baker Technology.
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貝克科技的資產負債表分析。
How Do Unusual Items Influence Profit?
不尋常的物品如何影響利潤?
Baker Technology's profit was reduced by unusual items worth S$4.0m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. This is what you'd expect to see where a company has a non-cash charge reducing paper profits. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. In the twelve months to December 2023, Baker Technology had a big unusual items expense. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.
在過去的十二個月中,貝克科技的利潤因價值40萬新元的不尋常項目而減少,這有助於其實現高現金轉化率,其不尋常的項目就反映了這一點。這就是你所期望看到的公司的非現金費用會減少紙面利潤的情況。儘管由於不尋常項目而產生的扣除首先令人失望,但有一線希望。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。鑑於這些單列項目被認爲不尋常,這並不奇怪。在截至2023年12月的十二個月中,貝克科技有一筆不尋常的巨額物品支出。因此,我們可以推測,這些不尋常的物品使其法定利潤明顯低於原來的水平。
Our Take On Baker Technology's Profit Performance
我們對貝克科技盈利表現的看法
In conclusion, both Baker Technology's accrual ratio and its unusual items suggest that its statutory earnings are probably reasonably conservative. After considering all this, we reckon Baker Technology's statutory profit probably understates its earnings potential! If you'd like to know more about Baker Technology as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Baker Technology has 3 warning signs and it would be unwise to ignore these.
總之,貝克科技的應計比率及其不尋常的項目都表明其法定收益可能相當保守。在考慮了所有這些之後,我們認爲貝克科技的法定利潤可能低估了其盈利潛力!如果您想進一步了解Baker Technology的業務,請務必了解其面臨的任何風險。在進行分析時,我們發現貝克科技有3個警告信號,忽視這些信號是不明智的。
After our examination into the nature of Baker Technology's profit, we've come away optimistic for the company. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. 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.
在研究了貝克科技的利潤性質之後,我們對該公司持樂觀態度。但是,如果你能夠將注意力集中在細節上,總會有更多的事情需要發現。有些人認爲高股本回報率是優質業務的好兆頭。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。