These 4 Measures Indicate That Chongyi Zhangyuan Tungsten (SZSE:002378) Is Using Debt Reasonably Well
These 4 Measures Indicate That Chongyi Zhangyuan Tungsten (SZSE:002378) Is Using Debt Reasonably Well
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that Chongyi Zhangyuan Tungsten Co., Ltd. (SZSE:002378) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?
有人說,波動性,而不是債務,是投資者思考風險的最佳方式,但禾倫·巴菲特曾說過一句名言:“波動性遠非風險的代名詞。”當你檢查公司的資產負債表的風險時,考慮它的資產負債表是很自然的,因爲企業倒閉時通常會涉及債務。我們注意到,崇義章源鎢業有限公司(深圳證券交易所:002378)的資產負債表上確實有債務。但更重要的問題是:這筆債務會帶來多大的風險?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
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. 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. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
當企業無法輕易履行這些義務時,無論是通過自由現金流還是以誘人的價格籌集資金,債務和其他負債就會面臨風險。如果情況變得非常糟糕,貸款人可以控制業務。但是,更頻繁(但仍然代價高昂)的情況是,公司必須以低廉的價格發行股票,永久稀釋股東,以支撐其資產負債表。當然,債務的好處是它通常代表廉價資本,尤其是當它用高回報率進行再投資的能力取代了公司的稀釋時。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。
What Is Chongyi Zhangyuan Tungsten's Debt?
崇義章源鎢業的債務是什麼?
You can click the graphic below for the historical numbers, but it shows that as of December 2023 Chongyi Zhangyuan Tungsten had CN¥1.98b of debt, an increase on CN¥1.50b, over one year. However, it also had CN¥660.5m in cash, and so its net debt is CN¥1.32b.
你可以點擊下圖查看歷史數字,但它顯示,截至2023年12月,崇義章源鎢業在一年內有19.8億元人民幣的債務,比15.0億元人民幣有所增加。但是,它也有6.605億元的現金,因此其淨負債爲13.2億元人民幣。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240425/0-107562abad1cc7dfe4496f0713d8df5f-0-fc2e1aef70f9195d4b254ae11123c9a5.png/big)
How Strong Is Chongyi Zhangyuan Tungsten's Balance Sheet?
崇義章源鎢業的資產負債表有多強?
According to the last reported balance sheet, Chongyi Zhangyuan Tungsten had liabilities of CN¥2.16b due within 12 months, and liabilities of CN¥670.6m due beyond 12 months. Offsetting this, it had CN¥660.5m in cash and CN¥572.5m in receivables that were due within 12 months. So it has liabilities totalling CN¥1.60b more than its cash and near-term receivables, combined.
根據上次報告的資產負債表,崇義章源鎢業在12個月內到期的負債爲21.6億元人民幣,12個月以後到期的負債爲6.706億元人民幣。與此相抵消的是,它有6.605億元的現金和5.725億元人民幣的應收賬款將在12個月內到期。因此,它的負債總額比現金和短期應收賬款的總和多出16.0億元人民幣。
While this might seem like a lot, it is not so bad since Chongyi Zhangyuan Tungsten has a market capitalization of CN¥7.79b, and so it could probably strengthen its balance sheet by raising capital if it needed to. However, it is still worthwhile taking a close look at its ability to pay off debt.
儘管這可能看起來很多,但還不錯,因爲崇義章源鎢業的市值爲7.79億元人民幣,因此如果需要,它可能會通過籌集資金來加強資產負債表。但是,仍然值得仔細研究其償還債務的能力。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
我們通過以下方法來衡量公司的債務負擔與其盈利能力:將其淨負債除以利息、稅項、折舊和攤銷前的收益(EBITDA),並計算其利息和稅前收益(EBIT)支付利息支出(利息保障)的難易程度。這種方法的優勢在於,我們既考慮了債務的絕對數量(包括淨負債與息稅折舊攤銷前利潤),也考慮了與該債務相關的實際利息支出(及其利息覆蓋率)。
Chongyi Zhangyuan Tungsten has a debt to EBITDA ratio of 2.7, which signals significant debt, but is still pretty reasonable for most types of business. But its EBIT was about 1k times its interest expense, implying the company isn't really paying a high cost to maintain that level of debt. Even were the low cost to prove unsustainable, that is a good sign. One way Chongyi Zhangyuan Tungsten could vanquish its debt would be if it stops borrowing more but continues to grow EBIT at around 17%, as it did over the last year. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Chongyi Zhangyuan Tungsten's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
崇義章源鎢業的債務與息稅折舊攤銷前利潤的比率爲2.7,這表明負債累累,但對於大多數類型的企業來說仍然相當合理。但是其息稅前利潤約爲利息支出的1萬倍,這意味着該公司並沒有爲維持這一債務水平付出高昂的代價。即使事實證明低成本是不可持續的,這也是一個好兆頭。崇義章源鎢業克服債務的一種方法是停止增加借款,但繼續像去年一樣將息稅前利潤增長至17%左右。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。但是,未來的收益比什麼都重要,將決定崇義章源鎢業未來維持健康資產負債表的能力。因此,如果你想看看專業人士的想法,你可能會發現這份關於分析師利潤預測的免費報告很有趣。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we always check how much of that EBIT is translated into free cash flow. In the last three years, Chongyi Zhangyuan Tungsten created free cash flow amounting to 2.5% of its EBIT, an uninspiring performance. That limp level of cash conversion undermines its ability to manage and pay down debt.
最後,儘管稅務人員可能喜歡會計利潤,但貸款人只接受冷硬現金。因此,我們總是檢查息稅前利潤中有多少轉化爲自由現金流。在過去的三年中,崇義章源鎢業創造了相當於其息稅前利潤的2.5%的自由現金流,表現平淡無奇。這種低迷的現金轉換水平削弱了其管理和償還債務的能力。
Our View
我們的觀點
On our analysis Chongyi Zhangyuan Tungsten's interest cover should signal that it won't have too much trouble with its debt. But the other factors we noted above weren't so encouraging. To be specific, it seems about as good at converting EBIT to free cash flow as wet socks are at keeping your feet warm. Considering this range of data points, we think Chongyi Zhangyuan Tungsten is in a good position to manage its debt levels. But a word of caution: we think debt levels are high enough to justify ongoing monitoring. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. Be aware that Chongyi Zhangyuan Tungsten is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored...
根據我們的分析,崇義章源鎢業的利息保障應該表明其在債務方面不會遇到太多麻煩。但是我們上面提到的其他因素並不那麼令人鼓舞。具體而言,它在將息稅前利潤轉化爲自由現金流方面似乎和溼襪在保持雙腳溫暖方面一樣好。考慮到這一系列數據點,我們認爲崇義章源鎢業完全有能力管理其債務水平。但要謹慎一點:我們認爲債務水平足夠高,足以證明持續監測是合理的。在分析債務水平時,資產負債表是顯而易見的起點。但歸根結底,每家公司都可以控制資產負債表之外存在的風險。請注意,崇義章源鎢業在我們的投資分析中顯示出3個警告信號,其中一個不容忽視...
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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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。