We Think Weihai Guangwei Composites (SZSE:300699) Can Stay On Top Of Its Debt
We Think Weihai Guangwei Composites (SZSE:300699) Can Stay On Top Of Its Debt
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' 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. Importantly, Weihai Guangwei Composites Co., Ltd. (SZSE:300699) does carry debt. But is this debt a concern to shareholders?
沃伦·巴菲特曾经说过,“波动性远非风险的代名词。”因此,明智的投资者应该知道,债务——通常与破产有关——是评估一家公司风险程度的非常重要的因素。重要的是,光威复材股份有限公司(SZSE:300699)确确实实存在债务。但这些债务会令股东感到担忧吗?
What Risk Does Debt Bring?
债务带来了什么风险?
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. If things get really bad, the lenders can take control of the business. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.
一般来说,只有在公司无法轻松还清债务时,债务才成为真正的问题,无论是通过筹集资金还是使用自己的现金流。如果情况变得非常糟糕,借贷方可以接管业务。然而,一种更常见(但仍然昂贵)的情况是公司必须以廉价股票稀释股东权益,以控制债务。当然,债务在企业中可能是一个重要的工具,特别是对于资本密集型企业。在考虑债务水平时,我们首先要考虑现金和债务水平。
How Much Debt Does Weihai Guangwei Composites Carry?
光威复材股份有限公司有多少债务?
As you can see below, at the end of March 2024, Weihai Guangwei Composites had CN¥696.2m of debt, up from CN¥193.7m a year ago. Click the image for more detail. However, it also had CN¥693.0m in cash, and so its net debt is CN¥3.19m.
如下所示,截至2024年3月底,光威复材有6.962亿元人民币的债务,比一年前的1.937亿元人民币增长了许多。点击图像了解更多细节。然而,它也有6.930亿元人民币的现金,因此其净债务为319万元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240615/0-7a919f83c6eb2af60a4aa3e8fe7a2dea-0-6b3359150ec31994f75946bf8aa00aa5.png/big)
A Look At Weihai Guangwei Composites' Liabilities
查看光威复合材料的负债情况。
According to the last reported balance sheet, Weihai Guangwei Composites had liabilities of CN¥777.3m due within 12 months, and liabilities of CN¥787.6m due beyond 12 months. On the other hand, it had cash of CN¥693.0m and CN¥2.20b worth of receivables due within a year. So it actually has CN¥1.33b more liquid assets than total liabilities.
根据最后一个报告的资产负债表,光威复材在12个月内有7.773亿元人民币的负债,超过12个月有7.876亿元人民币的负债。另一方面,它有6.930亿元人民币的现金和22亿元人民币的应收账款。所以它实际上有13.3亿元人民币。比总负债还多出了更多的流动资产。
This short term liquidity is a sign that Weihai Guangwei Composites could probably pay off its debt with ease, as its balance sheet is far from stretched. But either way, Weihai Guangwei Composites has virtually no net debt, so it's fair to say it does not have a heavy debt load!
这种短期流动性表明,光威复材可能很容易支付债务,因为其资产负债表远未受到影响。但无论如何,光威复材实际上没有净债务,因此可以说它负担不重!
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
为了对公司的债务相对于其收益进行规模适应,我们计算其净债务与利息、税、折旧和摊销前收益(EBITDA)之比及其税前收益(EBIT)与利息支出之比(利息保障倍数)。因此,我们既考虑到不包括折旧和摊销费用在内的收益,又包括折旧和摊销费用的收益相对于债务。
Weihai Guangwei Composites has barely any net debt, as demonstrated by its net debt to EBITDA ratio of only 0.003. Humorously, it actually received more in interest over the last twelve months than it had to pay. So there's no doubt this company can take on debt as easily as enthusiastic spray-tanners take on an orange hue. But the other side of the story is that Weihai Guangwei Composites saw its EBIT decline by 3.8% over the last year. That sort of decline, if sustained, will obviously make debt harder to handle. 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 Weihai Guangwei Composites 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.
光威复合材料的净债务与EBITDA比率仅为0.003,这说明它几乎没有净债务。有趣的是,它在过去的十二个月中获得的利息比付出的利息还多。因此,毫无疑问,这家公司可以像狂热的喷雾深色剂一样轻松地负担债务。但故事的另一面是,过去一年,光威复材的税前利润跌幅为3.8%。如果这种跌幅持续下去,债务无疑会更难处理。毫无疑问,我们从资产负债表中了解到债务的情况。但最终,业务的未来盈利能力将决定光威复材能否随着时间的推移加强其资产负债表。因此,如果您想查看专业人士的想法,您可能会发现分析师盈利预测的免费报告很有趣。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we always check how much of that EBIT is translated into free cash flow. Over the last three years, Weihai Guangwei Composites recorded negative free cash flow, in total. Debt is usually more expensive, and almost always more risky in the hands of a company with negative free cash flow. Shareholders ought to hope for an improvement.
最后,公司只能使用现金硬通货支付债务,而不是会计利润。因此,我们始终核对有多少税前利润转化为自由现金流。在过去的三年中,光威复材的自由现金流总计为负。对于具有负自由现金流的公司来说,债务通常更加昂贵,而且风险更大。股东应该希望有所改善。
Our View
我们的观点
Weihai Guangwei Composites's interest cover was a real positive on this analysis, as was its net debt to EBITDA. In contrast, our confidence was undermined by its apparent struggle to convert EBIT to free cash flow. Considering this range of data points, we think Weihai Guangwei Composites is in a good position to manage its debt levels. Having said that, the load is sufficiently heavy that we would recommend any shareholders keep a close eye on it. 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. For example Weihai Guangwei Composites has 2 warning signs (and 1 which is concerning) we think you should know about.
光威复材的利息覆盖率是此分析的真正优势,其净债务与EBITDA也是如此。相反,它无法将EBIT转化为自由现金流。考虑到这一系列数据点,我们认为光威复材处于管理其债务水平的良好位置。话虽如此,这项负担还是足够沉重的,我们建议股东始终密切关注。毫无疑问,我们从资产负债表中了解到债务的情况。但最终,每家公司都可能存在在资产负债表之外存在的风险。例如,光威复合材料有2个警告信号(其中1个令人担忧),我们认为您应该知道。
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.
如果您在所有这些工作之后,更感兴趣于拥有坚实资产负债表的快速发展公司,请立即查看我们的净现金成长股列表。
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