We Think WuXi AppTec (SHSE:603259) Can Stay On Top Of Its Debt
We Think WuXi AppTec (SHSE:603259) Can Stay On Top Of Its 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, WuXi AppTec Co., Ltd. (SHSE:603259) does carry debt. But should shareholders be worried about its use of debt?
伯克希爾哈撒韋的查理·芒格支持的外部基金經理李錄毫不掩飾地說:“最大的投資風險不是價格波動,而是你是否會遭受永久性資本損失。”當我們考慮公司的風險程度時,我們總是喜歡看它的債務利用情況,因爲債務超負荷會導致滅亡。重要的是,藥明康德(SHSE: 603259)確實擁有債務。但股東們應該擔心它的債務利用嗎?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. 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. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we think about a company's use of debt, we first look at cash and debt together.
債務是幫助企業增長的工具,但如果企業無法償還貸款,那麼就存在於貸款人的掌控之下。資本主義的一部分和組成部分是“創造性破壞”過程,失敗的企業會被銀行家無情地清算。然而,更常見(但仍然痛苦)的情況是,它不得不以低價籌集新的股權資本,從而永久地稀釋股東的權益。當然,債務在企業中可能是一個重要的工具,特別是對於資金充沛的企業而言。當考慮一個公司的債務使用時,我們首先看現金和債務。
What Is WuXi AppTec's Net Debt?
藥明康德的淨債務是多少?
The image below, which you can click on for greater detail, shows that at March 2024 WuXi AppTec had debt of CN¥5.77b, up from CN¥4.65b in one year. However, it does have CN¥16.2b in cash offsetting this, leading to net cash of CN¥10.5b.
下面的圖片(點擊可查看更詳細信息)顯示,截至2024年3月,藥明康德的債務爲57.7億人民幣,比一年前的46.5億人民幣增加。但它也有162億現金抵消這筆債務,導致淨現金爲105億人民幣。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240712/0-8a93403448df2c9e8ec5fc83c6fb6ec9-0-0ed8c0f8abfaff4e71b4aa977feb2a15.png/big)
How Healthy Is WuXi AppTec's Balance Sheet?
藥明康德的資產負債表狀況如何?
According to the last reported balance sheet, WuXi AppTec had liabilities of CN¥13.4b due within 12 months, and liabilities of CN¥5.50b due beyond 12 months. Offsetting this, it had CN¥16.2b in cash and CN¥8.43b in receivables that were due within 12 months. So it actually has CN¥5.76b more liquid assets than total liabilities.
根據最近公佈的資產負債表,藥明康德在12個月內有134億人民幣的負債,並有55億人民幣的負債超過12個月。抵消這些負債的是162億人民幣的現金和84.3億人民幣的應收款項,這些應收款項在12個月內到期。因此,它實際上比總負債多57.6億人民幣的流動資產。這種短期流動性意味着藥明康德可能很容易償還其債務,因爲它的資產負債表遠未過度緊張。簡言之,藥明康德擁有淨現金,因此可以說它沒有負擔過重的債務!
This short term liquidity is a sign that WuXi AppTec could probably pay off its debt with ease, as its balance sheet is far from stretched. Succinctly put, WuXi AppTec boasts net cash, so it's fair to say it does not have a heavy debt load!
藥明康德增加了10%的EBIt,這也是好的。資產負債表顯然是分析債務的主要領域。但是,更重要的是未來收益,這將決定藥明康德維持健康的資產負債表的能力。因此,如果您想了解專業人士的意見,您可能會發現這份有關分析師盈利預測的免費報告很有趣。最後,一家公司只能用冷硬現金而不是會計利潤來償還債務。藥明康德可能在資產負債表上有淨現金,但查看它將其利潤利息和稅前利潤(EBIT)轉換爲自由現金流的能力有多好,因爲這將影響其處理負債的需要和能力。
Also good is that WuXi AppTec grew its EBIT at 10% over the last year, further increasing its ability to manage debt. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine WuXi AppTec's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
儘管調查公司的債務水平總是明智的,但在這種情況下,藥明康德有105億人民幣的淨現金和看起來不錯的資產負債表。它還增加了10%的EBIt。因此,我們對藥明康德的債務利用沒有任何問題。當分析債務水平時,資產負債表是明顯的起點。但最終,每個公司都可能存在於資產負債表之外的風險。案例證明:我們發現藥明康德有1個警告信號,您需要注意到。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. WuXi AppTec may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. Looking at the most recent three years, WuXi AppTec recorded free cash flow of 32% of its EBIT, which is weaker than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness.
最後,一家公司只能用冰冷的現金而不是會計利潤來償還債務。藥明康德在資產負債表上可能有淨現金,但查看最近三年,藥明康德記錄的自由現金流相當於其EBIt的32%,這比我們預期的要弱。這種弱的現金轉換使處理負債更加困難。
Summing Up
總之
While it is always sensible to investigate a company's debt, in this case WuXi AppTec has CN¥10.5b in net cash and a decent-looking balance sheet. And it also grew its EBIT by 10% over the last year. So we don't have any problem with WuXi AppTec's use of debt. 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. Case in point: We've spotted 1 warning sign for WuXi AppTec you should be aware of.
儘管調查公司的債務水平總是明智的,但在這種情況下,藥明康德有105億人民幣的淨現金和看起來不錯的資產負債表。它還增加了10%的EBIt。因此,我們對藥明康德的債務利用沒有任何問題。當分析債務水平時,資產負債表是明顯的起點。但最終,每個公司都可能存在於資產負債表之外的風險。案例證明:我們發現藥明康德有1個警告信號,您需要注意到。
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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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.
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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? 對內容感到擔憂? 請直接與我們聯繫。 或者,發送電子郵件至editorial-team@simplywallst.com。