Here's Why Hunan Yuneng New Energy Battery MaterialLtd (SZSE:301358) Has A Meaningful Debt Burden
Here's Why Hunan Yuneng New Energy Battery MaterialLtd (SZSE:301358) Has A Meaningful Debt Burden
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.' 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 can see that Hunan Yuneng New Energy Battery Material Co.,Ltd. (SZSE:301358) does use debt in its business. But is this debt a concern to shareholders?
David Iben說得很好:“波動性不是我們關心的風險。我們關心的是避免永久性的資本損失。”當我們考慮一個公司有多大風險時,我們總是喜歡看它的債務使用,因爲過度負債可能導致破產。我們可以看到湖南雲能新能源電池材料股份有限公司(SZSE: 301358)在業務中使用債務。但是這種負債是否會影響股東呢?
When Is Debt Dangerous?
債務何時有危險?
Debt assists a business until the business has trouble paying it off, either with new capital or with free 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. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we think about a company's use of debt, we first look at cash and debt together.
債務會爲企業提供幫助,直到企業無法還清,無論是通過新的資本還是自由現金流。資本主義的本質是“創造性破壞”過程,失敗的企業都會被銀行家無情地清算。然而,更爲頻繁但同樣代價高昂的情況是,公司必須以極低的價格發行股票,永久性地稀釋股東利益,以彌補其資產負債表。話雖如此,最常見的情況是公司合理管理其債務,使其受益。當我們考慮公司的債務使用時,我們首先要看現金和債務。
What Is Hunan Yuneng New Energy Battery MaterialLtd's Debt?
湖南雲能新能源電池材料有限公司的債務是多少?
You can click the graphic below for the historical numbers, but it shows that Hunan Yuneng New Energy Battery MaterialLtd had CN¥5.43b of debt in March 2024, down from CN¥6.53b, one year before. However, because it has a cash reserve of CN¥1.44b, its net debt is less, at about CN¥4.00b.
您可以點擊下面的圖表查看歷史數字,但它顯示湖南雲能新能源電池材料有限公司在2024年3月份的債務爲543億元,比一年前的653億元減少。但由於其有144億元的現金儲備,因此其淨債務較少,約爲400億元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240716/0-3d1498906c41958b2c4d0036de4f09b9-0-11a2d08dff1122d88df2e3978907b896.png/big)
How Strong Is Hunan Yuneng New Energy Battery MaterialLtd's Balance Sheet?
湖南雲能新能源電池材料有限公司的資產負債表有多強?
We can see from the most recent balance sheet that Hunan Yuneng New Energy Battery MaterialLtd had liabilities of CN¥10.9b falling due within a year, and liabilities of CN¥3.80b due beyond that. Offsetting this, it had CN¥1.44b in cash and CN¥8.44b in receivables that were due within 12 months. So it has liabilities totalling CN¥4.80b more than its cash and near-term receivables, combined.
我們可以從最近的資產負債表上看到,湖南雲能新能源電池材料有限公司有109億元債務到期,還有38億元債務到期。與此相應的是,它有14.4億元的現金和84.4億元的應收賬款,在12個月內到期。所以,它的負債總額比其現金和短期應收賬款合計多約48億元。這種赤字不是很嚴重,因爲湖南雲能新能源電池材料有限公司價值223億元,因此如果需要,可能可以籌集足夠的資本來維持其資產負債表。但我們絕對要留意公司負債過多的風險跡象。
This deficit isn't so bad because Hunan Yuneng New Energy Battery MaterialLtd is worth CN¥22.3b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.
湖南雲能新能源電池材料有限公司的淨債務/EBITDA比率僅爲1.3,而且其股息支付能力容易覆蓋其利息支出,規模比爲10.8倍。所以你可以說它受到的債務威脅並不比大象受到老鼠的威脅更大。如果管理層無法防止去年EBIT下降47%的情況重演,那麼它的負債負擔的適度可能會變得關鍵。當一個公司的盈利暴跌時,有時會發現它與其貸款人之間的關係出現矛盾。從資產負債表上可以看出,我們確實學到了很多關於債務的信息。 但是,未來的盈利,比任何事情都更能決定湖南雲能新能源電池材料有限公司維持健康資產負債表的能力。因此,如果你想看專業人士的看法,你可能會發現這份關於分析師利潤預測的自由報告很有意思。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
我們使用兩個主要的比率來告訴我們相對於收益的債務水平。第一個是淨債務除以利息、稅、折舊和攤銷前利潤(EBITDA),而第二個是其利潤前利息和稅(EBIT)覆蓋其利息費用的次數(或其利息覆蓋率,簡稱)。因此,我們考慮與折舊和攤銷費用相關的盈利以及沒有相關費用的盈利相對於債務水平。
Hunan Yuneng New Energy Battery MaterialLtd has a low net debt to EBITDA ratio of only 1.3. And its EBIT easily covers its interest expense, being 10.8 times the size. So you could argue it is no more threatened by its debt than an elephant is by a mouse. The modesty of its debt load may become crucial for Hunan Yuneng New Energy Battery MaterialLtd if management cannot prevent a repeat of the 47% cut to EBIT over the last year. When a company sees its earnings tank, it can sometimes find its relationships with its lenders turn sour. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Hunan Yuneng New Energy Battery MaterialLtd'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.
最後,企業需要自由現金流來償還債務;會計利潤不能解決這個問題。因此,合理步驟是查看EBIt所匹配的實際自由現金流的比例。在過去三年中,湖南雲能新能源電池材料有限公司燒掉了大量現金。雖然投資者無疑期望在適當的時候逆轉這種情況,但這顯然意味着其債務的使用更加冒險。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. During the last three years, Hunan Yuneng New Energy Battery MaterialLtd burned a lot of cash. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
從表面上看,湖南雲能新能源電池材料有限公司的EBIt轉化爲自由現金流並沒有使我們對此股更有信心,其EBIt增長率也不比年度最繁忙的空餐廳更令人期待。但是好的一面是,它的利息覆蓋率是個好跡象,讓我們更加樂觀。看着資產負債表並考慮所有這些因素,我們確信債務正在讓湖南雲能新能源電池材料有限公司的股票變得有些冒險。一些人喜歡那種風險,但我們要注意潛在的陷阱,所以我們可能更願意它承擔更少的債務。
Our View
我們的觀點
On the face of it, Hunan Yuneng New Energy Battery MaterialLtd's conversion of EBIT to free cash flow left us tentative about the stock, and its EBIT growth rate was no more enticing than the one empty restaurant on the busiest night of the year. But on the bright side, its interest cover is a good sign, and makes us more optimistic. Looking at the balance sheet and taking into account all these factors, we do believe that debt is making Hunan Yuneng New Energy Battery MaterialLtd stock a bit risky. Some people like that sort of risk, but we're mindful of the potential pitfalls, so we'd probably prefer it carry less debt. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. For instance, we've identified 1 warning sign for Hunan Yuneng New Energy Battery MaterialLtd that you should be aware of.
乍一看,湖南雲能新能源電池材料有限公司將EBIt轉化爲自由現金流,讓我們對這隻股票感到猶豫,而它的EBIt增長率並不比一年中最繁忙的夜晚空無一人的餐廳更吸引人。但好的方面是,它的利息蓋息比是一個好的跡象,並使我們更加樂觀。從資產負債表出發,並考慮到所有這些因素,我們確實認爲債務使湖南雲能新能源電池材料有限公司的股票有些風險。有些人喜歡這種風險,但我們留意到潛在的陷阱,所以我們可能更喜歡它承擔較少的債務。在分析債務水平時,資產負債表是顯然的起點。然而,並非所有投資風險都在資產負債表內 - 遠非如此。例如,我們發現湖南雲能新能源電池材料有限公司存在1個預警信號,您應該注意到它。
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
如果您有興趣投資能夠在不負債的情況下增長利潤的企業,請查看這份免費列表,其中列出了在資產負債表上擁有淨現金的成長型企業。
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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
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。