Here's Why Everdisplay Optronics (Shanghai) (SHSE:688538) Can Afford Some Debt
Here's Why Everdisplay Optronics (Shanghai) (SHSE:688538) Can Afford Some Debt
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. Importantly, Everdisplay Optronics (Shanghai) Co., Ltd. (SHSE:688538) does carry debt. But the more important question is: how much risk is that debt creating?
伯克希尔·哈撒韦旗下的外部基金经理李录毫不掩饰地说,“最大的投资风险不是价格波动,而是你是否会遭受资本的永久损失。”当我们考虑一家公司的风险性时,我们总是喜欢看看它使用债务的情况,因为债务过载会导致灭顶之灾。重要的是,上海晶澳股份有限公司(SHSE: 688538)确实负债。但更重要的问题是:这些负债产生了多大的风险?
When Is Debt Dangerous?
债务何时有危险?
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 common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. The first step when considering a company's debt levels is to consider its cash and debt together.
一般来说,只有当公司无法轻易偿还债务时,通过筹集资本或使用其自身的现金流进行偿还债务时,债务才真正成为问题。资本主义的一个方面是“创造性破坏”过程,即银行家无情地清算失败的企业。然而,一种更常见(但仍然令人痛苦)的情况是,公司必须以低价筹集新的股本资本,从而永久性地稀释股东的持股。话虽如此,最常见的情况是企业合理管理其债务,为自己谋利。在考虑公司债务水平时的第一步是考虑其现金和债务的综合情况。
What Is Everdisplay Optronics (Shanghai)'s Debt?
什么是上海晶澳股份有限公司的债务情况?
The image below, which you can click on for greater detail, shows that at March 2024 Everdisplay Optronics (Shanghai) had debt of CN¥14.6b, up from CN¥13.4b in one year. However, it does have CN¥2.06b in cash offsetting this, leading to net debt of about CN¥12.5b.
下面这张图可以让你了解更多细节情况。截至2024年3月,上海晶澳股份有限公司的债务为146亿元人民币,较一年前的134亿元人民币有所增加。然而,它有20.6亿元人民币的现金抵销这笔债务,导致净债务约为125亿元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240614/0-9fecd07a047201490012c856e81d17f8-0-a53fd6a9cc808bc68d453132c41ae6e8.png/big)
How Strong Is Everdisplay Optronics (Shanghai)'s Balance Sheet?
上海晶澳股份有限公司的资产负债表强吗?
The latest balance sheet data shows that Everdisplay Optronics (Shanghai) had liabilities of CN¥3.27b due within a year, and liabilities of CN¥13.1b falling due after that. Offsetting these obligations, it had cash of CN¥2.06b as well as receivables valued at CN¥392.3m due within 12 months. So it has liabilities totalling CN¥13.9b more than its cash and near-term receivables, combined.
最新的资产负债表数据显示,上海晶澳股份有限公司的负债有3270万元人民币到期,131亿元人民币到期,其中3.923亿元人民币应于12个月内到期。因此,它的负债总额比现金和短期应收账款总额多出139亿元人民币。
While this might seem like a lot, it is not so bad since Everdisplay Optronics (Shanghai) has a market capitalization of CN¥28.4b, and so it could probably strengthen its balance sheet by raising capital if it needed to. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk. When analysing debt levels, the balance sheet is the obvious place to start. But it is Everdisplay Optronics (Shanghai)'s earnings that will influence how the balance sheet holds up in the future. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.
虽然看起来负债很多,但上海晶澳股份有限公司的市值为284亿元人民币,所以如果需要,它可能会通过发行股票增强其资产负债表。但是我们肯定要密切关注其债务是否带来了过多的风险。分析债务水平时,资产负债表是开始的明显地方。但最终,上海晶澳股份有限公司的盈利将影响资产负债表如何在未来保持。因此,如果您想了解更多有关其收益情况的信息,可以参考其长期收益趋势图。
In the last year Everdisplay Optronics (Shanghai) had a loss before interest and tax, and actually shrunk its revenue by 18%, to CN¥3.3b. We would much prefer see growth.
在过去一年中,上海晶澳股份有限公司利息和税前亏损,营业收入缩水18%,为33亿元人民币。我们非常希望看到增长。
Caveat Emptor
买方自负。
Not only did Everdisplay Optronics (Shanghai)'s revenue slip over the last twelve months, but it also produced negative earnings before interest and tax (EBIT). Indeed, it lost a very considerable CN¥2.9b at the EBIT level. Considering that alongside the liabilities mentioned above does not give us much confidence that company should be using so much debt. So we think its balance sheet is a little strained, though not beyond repair. However, it doesn't help that it burned through CN¥1.5b of cash over the last year. So in short it's a really risky stock. The balance sheet is clearly the area to focus on when you are analysing debt. 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 2 warning signs for Everdisplay Optronics (Shanghai) you should know about.
上海晶澳股份有限公司不仅在过去的十二个月中营收下滑,而且税息及折旧前利润(EBIT)也出现了负值。实际上,在税息及折旧前利润水平上,它亏损了相当可观的29亿元人民币。考虑到上面提到的负债,这并不能让我们相信该公司应该使用如此多的债务。因此,我们认为它的资产负债表有点紧张,尽管还没有无法弥补。然而,过去一年中,它烧掉了15亿元人民币的现金,这也没有帮助。所以简言之,这是一支非常冒险的股票。当您分析债务时,资产负债表显然是要着重考虑的领域。但最终,每家公司都可能存在平衡表以外的风险。这些风险很难发现。每家公司都有风险存在,我们已经发现了上海晶澳股份有限公司的两个预警信号,你需要知道这些信号。
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.
总的来说,专注于没有净债务的公司往往更好。您可以访问我们的特别列表,其中包含这些公司(所有这些公司都有盈利增长的记录)。这是免费的。
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