These 4 Measures Indicate That Zhejiang Jiahua Energy Chemical IndustryLtd (SHSE:600273) Is Using Debt Reasonably Well
These 4 Measures Indicate That Zhejiang Jiahua Energy Chemical IndustryLtd (SHSE:600273) Is Using Debt Reasonably Well
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' 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. Importantly, Zhejiang Jiahua Energy Chemical Industry Co.,Ltd. (SHSE:600273) does carry debt. But the real question is whether this debt is making the company risky.
霍華德·馬克斯(Howard Marks)曾經說過,與其擔心股價的波動性,“我擔心的是永久性損失的可能性……我認識的每一個實際投資者都會擔心這一點。”當你評估一個公司的風險時,考慮到負債通常與業務崩潰有關,因此公司的資產負債表是一個必須考慮的因素。重要的是,嘉化能源化工股份有限公司(SHSE:600273)確實有負債。但真正的問題是這些負債是否使公司充滿風險。
When Is Debt A Problem?
什麼時候負債才是一個問題?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. 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, 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. When we think about a company's use of debt, we first look at cash and debt together.
負債對一個公司有益,直到公司無法償還它,無論是通過新的資本還是通過自由現金流。資本主義的一個方面就是“創造性破壞”過程,失敗的公司被銀行家無情地清算。雖然這種情況並不多見,但我們經常看到負債累累的公司因爲貸款人強迫他們以低於市價的價格募集資本而永久地稀釋股東。當然,負債的好處在於它通常代表着廉價資本,特別是當它取代了在能夠以高回報率再投資的公司中發生稀釋情況時。當我們考慮一個公司的債務使用情況時,首先看現金和負債的總額。
What Is Zhejiang Jiahua Energy Chemical IndustryLtd's Debt?
嘉化能源化工股份有限公司的負債是什麼?
As you can see below, Zhejiang Jiahua Energy Chemical IndustryLtd had CN¥691.9m of debt, at March 2024, which is about the same as the year before. You can click the chart for greater detail. However, its balance sheet shows it holds CN¥1.23b in cash, so it actually has CN¥534.8m net cash.
正如下面所示,截至2024年3月,嘉化能源化工股份有限公司的債務爲6.919億元人民幣,與前一年基本持平。您可以單擊圖表以獲取更多詳細信息。然而,它的資產負債表顯示,它擁有12.3億元人民幣的現金,因此實際上有5.348億元人民幣的淨現金。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240606/0-7dab586881beb8ed2ebde61f9e94237c-0-3adcefa2d06167cde7fd41dd08d01d32.png/big)
How Strong Is Zhejiang Jiahua Energy Chemical IndustryLtd's Balance Sheet?
嘉化能源化工股份有限公司資產負債表有多強?
According to the last reported balance sheet, Zhejiang Jiahua Energy Chemical IndustryLtd had liabilities of CN¥2.12b due within 12 months, and liabilities of CN¥232.5m due beyond 12 months. On the other hand, it had cash of CN¥1.23b and CN¥1.50b worth of receivables due within a year. So it can boast CN¥374.6m more liquid assets than total liabilities.
根據最後一份披露的資產負債表,截至12個月,嘉化能源化工股份有限公司有2.12億元人民幣的負債到期,232.5萬元人民幣的負債超過12個月到期。另一方面,它有12.3億元人民幣的現金和15億元人民幣應收賬款。因此,它可以比以前多誇耀374.6萬元的流動資產。總負債。
This short term liquidity is a sign that Zhejiang Jiahua Energy Chemical IndustryLtd could probably pay off its debt with ease, as its balance sheet is far from stretched. Succinctly put, Zhejiang Jiahua Energy Chemical IndustryLtd boasts net cash, so it's fair to say it does not have a heavy debt load!
這種短期流動性表明嘉化能源化工股份有限公司可能很容易償還其債務,因爲它的資產負債表遠未達到極限。簡言之,嘉化能源化工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!
It is just as well that Zhejiang Jiahua Energy Chemical IndustryLtd's load is not too heavy, because its EBIT was down 33% over the last year. Falling earnings (if the trend continues) could eventually make even modest debt quite risky. When analysing debt levels, the balance sheet is the obvious place to start. But it is Zhejiang Jiahua Energy Chemical IndustryLtd's earnings that will influence how the balance sheet holds up in the future. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.
嘉化能源化工股份有限公司的EBIT在過去一年中下降了33%。下降的收益(如果趨勢持續下去)最終可能會使甚至是適度的債務變得相當危險。在分析債務水平時,資產負債表是一個明顯的起點。但值得注意的是,嘉化能源化工股份有限公司的收益將影響資產負債表將來的表現。因此,在考慮債務時,肯定值得看看收益趨勢。點擊此處獲取互動快照。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. While Zhejiang Jiahua Energy Chemical 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. During the last three years, Zhejiang Jiahua Energy Chemical IndustryLtd produced sturdy free cash flow equating to 55% of its EBIT, about what we'd expect. This free cash flow puts the company in a good position to pay down debt, when appropriate.
但我們最終的考慮也很重要,因爲公司無法用紙上的利潤支付債務,它需要切實可行的資金。雖然嘉化能源化工股份有限公司在其資產負債表中持有淨現金,但確實值得看看其將利潤(利息和稅前利潤EBIT)轉換爲自由現金流的能力,以幫助我們了解它正在積累(或侵蝕)資金的速度。在過去三年中,嘉化能源化工股份有限公司產生了堅實的自由現金流,相當於其EBIT的55%,符合我們的預期。這種自由現金流使得公司在適當時可以有充分的償還債務的能力。
Summing Up
總之
While it is always sensible to investigate a company's debt, in this case Zhejiang Jiahua Energy Chemical IndustryLtd has CN¥534.8m in net cash and a decent-looking balance sheet. So we are not troubled with Zhejiang Jiahua Energy Chemical IndustryLtd's debt use. 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. These risks can be hard to spot. Every company has them, and we've spotted 1 warning sign for Zhejiang Jiahua Energy Chemical IndustryLtd you should know about.
儘管調查公司的債務情況總是明智的,但在這種情況下,嘉化能源化工股份有限公司擁有5.348億元的淨現金和一個看起來不錯的資產負債表。因此,我們對嘉化能源化工股份有限公司的債務使用並不擔心。在分析債務水平時,資產負債表是一個明顯的起點。但最終,每個公司都可能存在超出資產負債表範圍的風險。這些風險很難發現。每個公司都存在這樣的風險,我們已經發現嘉化能源化工股份有限公司的一個警告跡象,您應該知道。
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.
總的來說,專注於沒有淨債務的公司往往更好。您可以訪問我們的特別列表,其中包含這些公司(所有這些公司都有盈利增長的記錄)。這是免費的。
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