These 4 Measures Indicate That Hangzhou Heatwell Electric Heating Technology (SHSE:603075) Is Using Debt Reasonably Well
These 4 Measures Indicate That Hangzhou Heatwell Electric Heating Technology (SHSE:603075) Is Using Debt Reasonably Well
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' 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 can see that Hangzhou Heatwell Electric Heating Technology Co., Ltd. (SHSE:603075) does use debt in its business. But should shareholders be worried about its use of debt?
當David Iben說'波動性不是我們關心的風險。我們關心的是避免資本永久損失。' 因此聰明的投資者很清楚債務 - 通常是破產的原因之一 - 是評估公司風險的一個非常重要因素。我們可以看到杭州海特威爾電熱科技股份有限公司(SHSE:603075)在營業中有使用債務。 但是,股東們應該擔心它的債務使用嗎?
When Is Debt Dangerous?
債務何時有危險?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
總的來說,只有當一家公司無法通過籌集資本或使用自身現金流來輕鬆償還債務時,債務才會成爲真正的問題。資本主義的一個重要方面是“創造性破壞”過程,失敗的企業被銀行家無情地清算。然而,更爲頻繁(但仍然代價高昂)的情況是一家公司必須以白菜價發行股票,永久性地稀釋股東權益,以此來穩定其資產負債表。當然,債務可以是企業中的一個重要工具,特別是重資產企業。在考慮一家公司的債務水平時,第一步是將其現金和債務考慮在一起。
What Is Hangzhou Heatwell Electric Heating Technology's Debt?
杭州海特威爾電熱技術的債務是什麼?
As you can see below, Hangzhou Heatwell Electric Heating Technology had CN¥360.2m of debt at March 2024, down from CN¥540.7m a year prior. However, it does have CN¥948.1m in cash offsetting this, leading to net cash of CN¥587.9m.
如下所示,2024年3月,杭州海特威爾電熱科技的債務爲人民幣3.602億元,較一年前的人民幣5.407億元減少。但是,它擁有人民幣9.481億元的現金,抵消了債務,形成淨現金爲人民幣5.879億元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240611/0-d4fbfe260a6c0d6bf26f31259f7d3060-0-cf66f2b1006e70b10bd6a69c62c29ee2.png/big)
How Healthy Is Hangzhou Heatwell Electric Heating Technology's Balance Sheet?
杭州海特威爾電熱技術的資產負債表有多健康?
According to the last reported balance sheet, Hangzhou Heatwell Electric Heating Technology had liabilities of CN¥777.6m due within 12 months, and liabilities of CN¥14.2m due beyond 12 months. On the other hand, it had cash of CN¥948.1m and CN¥541.4m worth of receivables due within a year. So it can boast CN¥697.6m more liquid assets than total liabilities.
根據最後公佈的資產負債表,杭州海特威爾電熱技術的負債包括12個月內到期的人民幣7.776億元,以及超過12個月到期的人民幣1.42億元。另一方面,它的現金爲人民幣9.481億元,應收賬款爲人民幣5.414億元。因此,它能夠比其負債多擁有人民幣6.976億元的流動資產。總負債。
This short term liquidity is a sign that Hangzhou Heatwell Electric Heating Technology could probably pay off its debt with ease, as its balance sheet is far from stretched. Simply put, the fact that Hangzhou Heatwell Electric Heating Technology has more cash than debt is arguably a good indication that it can manage its debt safely.
這種短期流動性表明,杭州海特威爾電熱科技很可能能夠輕鬆償還其債務,因爲它的資產負債表與緊張程度相距甚遠。簡而言之,杭州海特威爾電熱科技擁有比債務更多的現金,這是一個良好的跡象,表明它可以安全地管理其債務。
Fortunately, Hangzhou Heatwell Electric Heating Technology grew its EBIT by 6.4% in the last year, making that debt load look even more manageable. There's no doubt that we learn most about debt from the balance sheet. But it is Hangzhou Heatwell Electric Heating Technology'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.
幸運的是,杭州海特威爾電熱技術去年的稅前利潤增加了6.4%,使得債務負擔看起來更可管理。毫無疑問,我們從資產負債表中了解到的關於債務的大部分信息。但是,杭州海特威爾電熱技術的盈利將影響資產負債表在未來的情況。因此,在考慮債務時,肯定值得看一下收益趨勢。點擊此處查看互動快照。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. While Hangzhou Heatwell Electric Heating Technology 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. In the last three years, Hangzhou Heatwell Electric Heating Technology's free cash flow amounted to 26% of its EBIT, less than we'd expect. That's not great, when it comes to paying down debt.
最後,一家公司只能用硬通貨現金償還債務,而不是會計利潤。雖然杭州海特威爾電熱技術的資產負債表上有淨現金,但值得關注的是,我們需要看一下其將利潤和利息(EBIT)轉化爲自由現金流的能力,以幫助我們理解它正在以多快的速度建立(或侵蝕)現金資產。在過去的三年中,杭州海特威爾電熱技術的自由現金流僅爲其EBIT的26%,低於我們的預期。在還債方面,這並不好。
Summing Up
總之
While we empathize with investors who find debt concerning, you should keep in mind that Hangzhou Heatwell Electric Heating Technology has net cash of CN¥587.9m, as well as more liquid assets than liabilities. On top of that, it increased its EBIT by 6.4% in the last twelve months. So we don't have any problem with Hangzhou Heatwell Electric Heating Technology's use of debt. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. Be aware that Hangzhou Heatwell Electric Heating Technology is showing 1 warning sign in our investment analysis , you should know about...
雖然我們能理解那些關注債務的投資者的心情,但你應該知道杭州赫泰電熱科技擁有5,879.0百萬元的淨現金,並且擁有的流動資產大於負債。另外,它在過去的12個月中EBIT增長了6.4%。因此,我們對杭州赫泰電熱科技使用債務的情況沒有任何問題。毫無疑問,我們從資產負債表中了解最多的是有關債務的信息。然而,並非所有的投資風險都存在於資產負債表中-遠非如此。請注意,我們的投資分析中杭州赫泰電熱科技正在顯示1個警示信號,你需要知道這些……
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.
如果您在所有這些工作之後,更感興趣於擁有堅實資產負債表的快速發展公司,請立即查看我們的淨現金成長股列表。
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