Skyworth Digital (SZSE:000810) Has A Pretty Healthy Balance Sheet
Skyworth Digital (SZSE:000810) Has A Pretty Healthy Balance Sheet
Legendary fund manager Li Lu (who Charlie Munger backed) once said, '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. We note that Skyworth Digital Co., Ltd. (SZSE:000810) does have debt on its balance sheet. But is this debt a concern to shareholders?
傳奇基金經理李錄(Charlie Munger支持的)曾說過,“最大的投資風險不是價格波動,而是您是否會遭受資本永久損失。”當我們考慮一家公司的風險程度時,我們總是喜歡查看其使用債務的情況,因爲債務過重可能會導致毀滅。我們注意到創維數字股份有限公司(SZSE:000810)確實在其資產負債表中有債務。但是這種債務是否會令股東擔憂呢?
When Is Debt Dangerous?
債務何時有危險?
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. 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, plenty of companies use debt to fund growth, without any negative consequences. When we think about a company's use of debt, we first look at cash and debt together.
當公司無法藉助自由現金流或以有吸引力的價格籌集資金來輕鬆履行債務和其他負債時,債務和其他負債變得有風險。最壞的情況下,如果公司無法償還其債權人,它會破產。然而,更常見的(但仍然很昂貴的)情況是,公司必須以低廉的股票價格稀釋股東,以便控制債務。當然,很多公司使用債務來資助成長,而沒有任何負面影響。當我們考慮公司的債務使用情況時,我們首先看現金和債務的總和。
What Is Skyworth Digital's Net Debt?
創維數字的淨債務是多少?
As you can see below, at the end of March 2024, Skyworth Digital had CN¥1.08b of debt, up from CN¥640.5m a year ago. Click the image for more detail. However, its balance sheet shows it holds CN¥3.51b in cash, so it actually has CN¥2.42b net cash.
如下圖所示,在2024年3月底,創維數字的債務爲人民幣10.8億元,高於一年前的人民幣6.405億元。點擊圖片以獲取更多詳情。但是,其資產負債表顯示其持有人民幣35.1億元現金,因此實際上其淨現金爲人民幣24.2億元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240626/0-6033b97988d41d3da0323311d3de09b7-0-9f72961c0271bcb6e7ab70b849505560.png/big)
How Strong Is Skyworth Digital's Balance Sheet?
創維數字的資產負債表強度如何?
We can see from the most recent balance sheet that Skyworth Digital had liabilities of CN¥4.64b falling due within a year, and liabilities of CN¥194.3m due beyond that. On the other hand, it had cash of CN¥3.51b and CN¥3.58b worth of receivables due within a year. So it actually has CN¥2.26b more liquid assets than total liabilities.
我們可以從最近一份資產負債表中看到,創維數字的流動負債爲人民幣46.4億元,並且超過一年到期的負債爲人民幣1.943億元。另一方面,它有人民幣35.1億元現金和人民幣35.8億元應收賬款。因此,它實際上有人民幣22.6億元的淨流動資產。比總負債還多出了更多的流動資產。
This excess liquidity suggests that Skyworth Digital is taking a careful approach to debt. Given it has easily adequate short term liquidity, we don't think it will have any issues with its lenders. Simply put, the fact that Skyworth Digital has more cash than debt is arguably a good indication that it can manage its debt safely.
這種過剩的流動性表明創維數字正在謹慎處理債務。鑑於其短期流動性充足,我們認爲它不會遇到任何與債權人的問題。簡而言之,創維數字擁有的現金比債務多是其能夠安全管理其債務的良好標誌。
It is just as well that Skyworth Digital's load is not too heavy, because its EBIT was down 22% over the last year. When a company sees its earnings tank, it can sometimes find its relationships with its lenders turn sour. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Skyworth Digital can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
幸好,創維數字的負擔並不太重,因爲其稅前收益在過去一年下降了22%。當公司看到其收益率下降時,它有時會發現自己與債權人的關係也變得糟糕。在分析債務水平時,資產負債表是開始的明顯地方。但是,最終企業未來的盈利能力將決定創維數字是否能夠隨着時間的推移加強其資產負債表。因此,如果您關注未來,可以查看此免費報告,其中顯示了分析師的盈利預測。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. While Skyworth Digital 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, Skyworth Digital produced sturdy free cash flow equating to 67% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.
最後,公司只能用冷硬現金而不是會計利潤來償還債務。雖然創維數字在其資產負債表中有淨現金,但是它仍然值得看一下如何將稅前利潤(EBIT)轉換爲自由現金流,以幫助我們了解其建立(或侵蝕)現金餘額的速度。在過去三年中,創維數字產生了強勁的自由現金流,相當於其EBIT的67%,大約是我們所期望的。這些冷硬的現金意味着它可以在想要時減少債務。
Summing Up
總之
While we empathize with investors who find debt concerning, you should keep in mind that Skyworth Digital has net cash of CN¥2.42b, as well as more liquid assets than liabilities. The cherry on top was that in converted 67% of that EBIT to free cash flow, bringing in CN¥30m. So we are not troubled with Skyworth Digital's debt use. 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. We've identified 1 warning sign with Skyworth Digital , and understanding them should be part of your investment process.
雖然我們同情那些對債務感到擔憂的投資者,但您應該記住,創維數字擁有人民幣24.2億元的淨現金,以及比負債更多的流動資產。此外它將EBIT的67%轉換爲自由現金流,帶來人民幣3,000萬元。因此,我們對創維數字的債務使用沒有問題。當您分析債務時,資產負債表顯然是需要關注的地方。但是,每個公司最終都可能存在超出資產負債表範圍的風險。我們已經確定了創維數字的1個警示信號,了解它們應該是您的投資過程的一部分。
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或者,發送電子郵件至editorial-team (at) simplywallst.com。
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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或者發送電子郵件至editorial-team@simplywallst.com。