Here's Why Shanghai Mechanical & Electrical IndustryLtd (SHSE:600835) Can Manage Its Debt Responsibly
Here's Why Shanghai Mechanical & Electrical IndustryLtd (SHSE:600835) Can Manage Its Debt Responsibly
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' 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. As with many other companies Shanghai Mechanical & Electrical Industry Co.,Ltd. (SHSE:600835) makes use of debt. But is this debt a concern to shareholders?
伯克希爾哈撒韋公司的Charlie Munger支持的外部基金經理Li Lu在談到投資時明確表示:“最大的投資風險不是價格波動,而是資本永久損失。” 當我們考慮一家公司的風險時,我們總是喜歡看看它的債務使用情況,因爲債務負擔過重可能會導致破產。 和許多其他公司一樣,上海機電股份有限公司(SHSE:600835)使用債務。 不過,這些債務是否會讓股東感到擔憂呢?
What Risk Does Debt Bring?
債務帶來了什麼風險?
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. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we examine debt levels, we first consider both cash and debt levels, together.
當公司無法通過自由現金流或以有吸引力的價格籌集資本來輕鬆履行債務義務時,債務和其他負債就會變得有風險。 最壞的情況下,如果一家公司不能償還債權人的款項,則會破產。 儘管這種情況並不常見,但我們經常看到負債累累的公司因爲借款人強迫他們以賤價發行股票而永久稀釋股東的利益。 話雖如此,最常見的情況是公司合理地管理其債務 - 並且對自身有利。 當我們檢查債務水平時,我們首先考慮現金和債務水平。
How Much Debt Does Shanghai Mechanical & Electrical IndustryLtd Carry?
上海機電股份有限公司承擔多少債務?
You can click the graphic below for the historical numbers, but it shows that as of March 2024 Shanghai Mechanical & Electrical IndustryLtd had CN¥61.3m of debt, an increase on CN¥56.0m, over one year. However, its balance sheet shows it holds CN¥12.8b in cash, so it actually has CN¥12.8b net cash.
您可以點擊下面的圖表查看歷史數字,但它顯示的是截至2024年3月,上海機電股份有限公司負債6129萬元,同比增加5600萬元,實際上它持有128億元的現金,因此實際擁有128億元的淨現金。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240529/0-e04048cd56b0e55dcf1191c8a72d0a8b-0-0be6b39d65f1132c6dc5ed815b816b35.png/big)
How Healthy Is Shanghai Mechanical & Electrical IndustryLtd's Balance Sheet?
上海機電股份有限公司的資產負債表有多健康?
The latest balance sheet data shows that Shanghai Mechanical & Electrical IndustryLtd had liabilities of CN¥20.6b due within a year, and liabilities of CN¥374.7m falling due after that. Offsetting these obligations, it had cash of CN¥12.8b as well as receivables valued at CN¥6.89b due within 12 months. So its liabilities total CN¥1.24b more than the combination of its cash and short-term receivables.
最新的資產負債表數據顯示,上海機電股份有限公司有206億元的短期債務到期,並有3747萬元的長期債務到期。 抵消這些債務的是其現金金額達128億元,以及價格爲68.9億元的應收賬款。 因此,其負債總額比其現金和短期應收賬款的總和高1.24億元。
Of course, Shanghai Mechanical & Electrical IndustryLtd has a market capitalization of CN¥11.9b, so these liabilities are probably manageable. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time. Despite its noteworthy liabilities, Shanghai Mechanical & Electrical IndustryLtd boasts net cash, so it's fair to say it does not have a heavy debt load!
當然,上海機電股份有限公司的市值爲119億元,因此這些負債可能是可以管理的。 但是,我們認爲值得關注其資產負債表強度,因爲它可能隨時間而變化。 儘管其傑出負債累累,上海機電股份有限公司擁有淨現金,因此可以說它沒有沉重的債務負擔!
While Shanghai Mechanical & Electrical IndustryLtd doesn't seem to have gained much on the EBIT line, at least earnings remain stable for now. 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 Shanghai Mechanical & Electrical IndustryLtd can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
雖然上海機電股份有限公司在息稅前利潤(EBIT)方面似乎沒有獲得很多收益,但至少收益現在保持穩定。 我們毫無疑問地了解到資產負債表上關於負債的大部分情況。 但是,最終業務的未來盈利能力將決定上海機電股份有限公司是否能夠隨着時間的推移增強其資產負債表。 因此,如果您想了解專業人士的看法,您可能會發現我們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. While Shanghai Mechanical & Electrical IndustryLtd has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. Over the last three years, Shanghai Mechanical & Electrical IndustryLtd actually produced more free cash flow than EBIT. That sort of strong cash generation warms our hearts like a puppy in a bumblebee suit.
最後,儘管稅務部門可能喜歡會計利潤,但借款人只接受冰冷的現金。 雖然上海機電股份有限公司在其資產負債表上擁有淨現金,但仍然值得看看它將EBIT轉化爲自由現金流的能力,以幫助我們理解它是如何快速積累(或侵蝕)該現金平衡。 在過去的三年中,上海機電股份有限公司確實比EBIT產生了更多的自由現金流。 這種強勁的現金生成能力讓我們像穿着大黃蜂服的小狗一樣感到溫暖。
Summing Up
總之
While Shanghai Mechanical & Electrical IndustryLtd does have more liabilities than liquid assets, it also has net cash of CN¥12.8b. And it impressed us with free cash flow of CN¥936m, being 116% of its EBIT. So we don't think Shanghai Mechanical & Electrical IndustryLtd's use of debt is risky. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. Be aware that Shanghai Mechanical & Electrical IndustryLtd is showing 1 warning sign in our investment analysis , you should know about...
儘管上海機電有限公司的負債比流動資產多,但它也持有淨現金128億元人民幣。並且,它的自由現金流爲93600萬元人民幣,相當於EBIT的116%,給我們留下了深刻印象。因此,我們認爲上海機電有限公司的債務使用並不冒險。毫無疑問,我們從資產負債表中了解到大多數關於債務的信息。但最終,每家公司都可能存在不在資產負債表上的風險。請注意,上海機電有限公司在我們的投資分析中顯示了1個警告信號,您應該了解它...
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
說到底,有時更容易關注那些甚至不需要債務的公司。讀者可以免費查看零淨債務增長股票列表,立即獲得。
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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。