We Think Zhejiang Dun'an Artificial Environment (SZSE:002011) Can Manage Its Debt With Ease
We Think Zhejiang Dun'an Artificial Environment (SZSE:002011) Can Manage Its Debt With Ease
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.' 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, Zhejiang Dun'an Artificial Environment Co., Ltd (SZSE:002011) does carry debt. But should shareholders be worried about its use of debt?
伯克希尔哈撒韦的查理·芒格背后的外部基金经理李录,毫不掩饰地说:“最大的投资风险不是价格的波动性,而是你是否会遭受永久性的资本损失。”所以聪明的资金知道,通常涉及破产的债务是评估公司风险的非常重要的因素。重要的是,浙江盾安环境股份有限公司(SZSE:002011)确实负债。但股东们是否应该担心它的债务使用呢?
Why Does Debt Bring Risk?
为什么债务会带来风险?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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. 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. When we think about a company's use of debt, we first look at cash and debt together.
债务对于企业是一种辅助资金,直到企业无法用新资本或自由现金流偿还债务为止。最坏的情况下,如果企业无法偿还债权人的债务,就可能破产。然而,更频繁(但仍然昂贵)的情况是,一个公司必须以极低的价格发行股票,以永久性地稀释股东,以支撑其资产负债表。然而,通过取代稀释,债务可以成为需要资本以高回报率投资成长的企业的极好工具。当我们考虑一个公司的债务使用时,我们首先看现金和债务的组合。
What Is Zhejiang Dun'an Artificial Environment's Net Debt?
浙江盾安环境的净债务是多少?
The image below, which you can click on for greater detail, shows that at March 2024 Zhejiang Dun'an Artificial Environment had debt of CN¥1.66b, up from CN¥1.37b in one year. But on the other hand it also has CN¥2.72b in cash, leading to a CN¥1.05b net cash position.
下面的图像可以点击以获取更详细的信息,它显示了2024年3月浙江盾安环境股份有限公司的债务总额为16.6亿元人民币,而一年前则为13.7亿元人民币。但另一方面,它也有27.2亿元人民币的现金,导致净现金头寸达到10.5亿元人民币。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240801/0-12508d104340299c0c8c26ddbc190421-0-8d04ee3d040f449dc580852eb978fa87.png/big)
How Healthy Is Zhejiang Dun'an Artificial Environment's Balance Sheet?
浙江盾安环境股份有限公司的资产负债表状况如何?
According to the last reported balance sheet, Zhejiang Dun'an Artificial Environment had liabilities of CN¥5.31b due within 12 months, and liabilities of CN¥878.7m due beyond 12 months. On the other hand, it had cash of CN¥2.72b and CN¥4.21b worth of receivables due within a year. So it can boast CN¥736.8m more liquid assets than total liabilities.
根据最近公布的资产负债表,浙江盾安环境股份有限公司在12个月内应付的债务为53.1亿元人民币,超过12个月的应付债务为8,787万元人民币。而另一方面,它有27.2亿元人民币的现金和42.1亿元人民币的一年内到期的应收账款。所以,它能够拥有比总负债更多的流动资产7368万元人民币。
This short term liquidity is a sign that Zhejiang Dun'an Artificial Environment could probably pay off its debt with ease, as its balance sheet is far from stretched. Simply put, the fact that Zhejiang Dun'an Artificial Environment has more cash than debt is arguably a good indication that it can manage its debt safely.
这种短期流动性表明,浙江盾安环境股份有限公司可以轻松偿还其债务,因为其资产负债表远未过度紧张。简而言之,浙江盾安环境股份有限公司比债务还多的现金是一个很好的迹象,表明它可以安全地管理其债务。
Another good sign is that Zhejiang Dun'an Artificial Environment has been able to increase its EBIT by 26% in twelve months, making it easier to pay down 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 Zhejiang Dun'an Artificial Environment 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.
另一个好迹象是:在过去的12个月中,浙江盾安环境股份有限公司成功地增加了26% 的EBIT,从而更容易偿还债务。毫无疑问,我们从资产负债表中所了解的关于债务的信息最多。但最终,业务未来的盈利能力将决定浙江盾安环境股份有限公司能否以时间为基础加强其资产负债表。如果你关注未来,你可以查看这个免费报告,显示分析师的盈利预测。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. Zhejiang Dun'an Artificial Environment 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. During the last three years, Zhejiang Dun'an Artificial Environment produced sturdy free cash flow equating to 79% of its EBIT, about what we'd expect. This free cash flow puts the company in a good position to pay down debt, when appropriate.
最后,一家公司只能用冰冷的现金而不是会计利润来偿还债务。浙江盾安环境股份有限公司可能会在资产负债表中拥有净现金,但看看这个企业将其利息和税前收益(EBIT)转化为自由现金流的情况,以及如何影响其处理债务的需求和能力仍然是有趣的。在过去的三年中,浙江盾安环境股份有限公司创造了稳健的自由现金流,相当于其EBIT的79%,接近我们的预期。这种自由现金流使该公司有能力在适当时期偿还债务。
Summing Up
总之
While it is always sensible to investigate a company's debt, in this case Zhejiang Dun'an Artificial Environment has CN¥1.05b in net cash and a decent-looking balance sheet. The cherry on top was that in converted 79% of that EBIT to free cash flow, bringing in CN¥581m. So is Zhejiang Dun'an Artificial Environment's debt a risk? It doesn't seem so to us. Above most other metrics, we think its important to track how fast earnings per share is growing, if at all. If you've also come to that realization, you're in luck, because today you can view this interactive graph of Zhejiang Dun'an Artificial Environment's earnings per share history for free.
虽然调查公司的债务总是明智的,但在这种情况下,浙江盾安环境股份有限公司拥有1.05亿元人民币的净现金和一个看起来不错的资产负债表。最后再给它加上79%的EBIT转化成自由现金流,带来了5810万元人民币。那么,浙江盾安环境股份有限公司的债务是否存在风险呢?在我们看来,它并没有。相较于其他指标,我们认为跟踪每股收益增长速度的快慢,如果增长了,这样做非常重要。如果您也意识到了这一点,那么您是幸运的,因为今天您可以免费查看浙江盾安环境股份有限公司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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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有任何反馈?对内容有任何疑虑?请直接与我们联系。或者,发送电子邮件至editorial-team@simplywallst.com。