Royal Gold (NASDAQ:RGLD) Seems To Use Debt Quite Sensibly
Royal Gold (NASDAQ:RGLD) Seems To Use Debt Quite Sensibly
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.' 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, Royal Gold, Inc. (NASDAQ:RGLD) does carry debt. But the more important question is: how much risk is that debt creating?
传奇基金经理李录(受查利·芒格支持)曾经说过:“最大的投资风险不是价格波动性,而是您是否会遭受永久性资本损失。”因此,似乎明智的投资者知道,通常涉及破产的债务是评估公司风险的非常重要因素。重要的是,Royal Gold,Inc.(NASDAQ:RGLD)确实负载债务。但更重要的问题是:这笔债务产生了多大的风险?
When Is Debt Dangerous?
债务何时有危险?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together.
债务可以帮助企业度过燃眉之急,要么通过新的资本,要么通过自由现金流。如果情况真的很糟糕,借款人可能会控制企业。虽然这不太常见,但我们经常看到负债的企业因为贷方迫使它们以降价的价格融资而永久性地稀释股东的权益。但是,通过代替稀释,债务可以成为需要高回报投资增长的企业的极好工具。考虑企业的债务水平时的第一步是将它的现金和债务放在一起考虑。
What Is Royal Gold's Net Debt?
皇家黄金的净债务是多少?
As you can see below, Royal Gold had US$146.2m of debt at March 2024, down from US$496.8m a year prior. However, it also had US$138.0m in cash, and so its net debt is US$8.24m.
正如您在下面所见,Royal Gold于2024年3月有1.46亿美元的债务,比上一年的4,968万美元下降。但是,它还有1.38亿美元的现金,因此其净债务为820万美元。
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How Strong Is Royal Gold's Balance Sheet?
皇家黄金的资产负债表有多坚实?
We can see from the most recent balance sheet that Royal Gold had liabilities of US$77.1m falling due within a year, and liabilities of US$312.8m due beyond that. On the other hand, it had cash of US$138.0m and US$41.9m worth of receivables due within a year. So its liabilities total US$210.1m more than the combination of its cash and short-term receivables.
我们可以看到,最近一期的资产负债表显示皇家黄金有7,710万美元的短期到期负债和3.128亿美元的长期到期负债。另一方面,它有1.38亿美元的现金和4,190万美元即将到期的应收账款。因此,它的负债总计比其现金和短期应收账款的组合多2,101万美元。
Given Royal Gold has a market capitalization of US$8.88b, it's hard to believe these liabilities pose much threat. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse. Carrying virtually no net debt, Royal Gold has a very light debt load indeed.
鉴于皇家黄金的市值为8.88亿美元,很难相信这些负债会构成多大的威胁。话虽如此,明显我们应继续监测其资产负债表,以防情况变得更糟。拥有几乎没有净债务,皇家黄金的债务负载非常轻。
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). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
为了比较一个公司的债务与其收益的关系,我们计算其净债务除以利息、税、折旧和摊销前的收益和利息前的收益(其利息覆盖率)。因此,我们考虑了债务的绝对数量以及支付的利率。
Royal Gold has very little debt (net of cash), and boasts a debt to EBITDA ratio of 0.018 and EBIT of 22.3 times the interest expense. Indeed relative to its earnings its debt load seems light as a feather. Royal Gold's EBIT was pretty flat over the last year, but that shouldn't be an issue given the it doesn't have a lot of debt. 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 Royal Gold 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.
皇家黄金(扣除现金)几乎没有债务,负债到息税前利润比为0.018和利息支出的EBIt为22.3倍。实际上,相对于其收益,其债务负载似乎非常轻。皇家黄金的EBIt在过去一年中相当平稳,但考虑到其没有太多债务,这应该不是问题。毫无疑问,我们应从资产负债表中了解有关债务的大部分内容。但最终业务的未来盈利能力将决定皇家黄金是否能够随着时间的推移加强其资产负债表。因此,如果您想了解专业人士的观点,您可能会发现这份分析师利润预测的免费报告感兴趣。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Over the last three years, Royal Gold reported free cash flow worth 5.3% of its EBIT, which is really quite low. That limp level of cash conversion undermines its ability to manage and pay down debt.
最后,企业需要自由现金流来偿还债务;会计利润无法做到这一点。因此,我们清楚地需要看看EBIt是否带来相应的自由现金流。在过去的三年中,皇家黄金报告的自由现金流价值相当于其EBIt的5.3%,这实际上非常低。这种低效的现金转换水平削弱了其管理和偿还债务的能力。
Our View
我们的观点
The good news is that Royal Gold's demonstrated ability to cover its interest expense with its EBIT delights us like a fluffy puppy does a toddler. But we must concede we find its conversion of EBIT to free cash flow has the opposite effect. Looking at all the aforementioned factors together, it strikes us that Royal Gold can handle its debt fairly comfortably. Of course, while this leverage can enhance returns on equity, it does bring more risk, so it's worth keeping an eye on this one. Over time, share prices tend to follow earnings per share, so if you're interested in Royal Gold, you may well want to click here to check an interactive graph of its earnings per share history.
好消息是,皇家黄金已经证明它能够用其EBIt来覆盖其利息费用,这使我们像蓬松的小狗一样高兴。但我们必须承认,它将EBIt转化为自由现金流的能力产生了相反的影响。综合考虑所有上述因素,我们认为皇家黄金可以相当轻松地处理其债务。当然,尽管这种杠杆可以增强股本收益率,但它也带来更多风险,因此值得关注。随着时间的推移,股价往往会跟随每股收益而变化,因此如果您对皇家黄金感兴趣,您可能想单击这里查看其每股收益历史的交互式图表。
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.
如果您有兴趣投资能够在不负债的情况下增长利润的企业,请查看这份免费列表,其中列出了在资产负债表上拥有净现金的成长型企业。
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