Here's Why Weatherford International (NASDAQ:WFRD) Can Manage Its Debt Responsibly
Here's Why Weatherford International (NASDAQ:WFRD) Can Manage Its Debt Responsibly
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 might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. Importantly, Weatherford International plc (NASDAQ:WFRD) does carry debt. But the more important question is: how much risk is that debt creating?
傳奇基金經理李璐(受查理·芒格支持)曾說,「最大的投資風險不是價格波動性,而是你是否會遭受永久性的資本損失。」因此,你考慮股票的風險時,需要考慮債務,因爲過多的債務可能會使公司破產。重要的是,Weatherford International plc (NASDAQ:WFRD) 的確承擔着債務。但更重要的問題是:這些債務產生了多少風險?
What Risk Does Debt Bring?
債務帶來了什麼風險?
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. 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. When we think about a company's use of debt, we first look at cash and debt together.
債務可以爲企業提供幫助,直到企業無法用新資本或自由現金流償還爲止。最壞的情況是,如果企業無法償還債權人,則可能破產。雖然這不太常見,但我們經常看到負債的公司因爲貸方迫使它們以低價募資而永久稀釋股東。通過替代稀釋,債務可以成爲需要高回報增長資本的企業的極好工具。當我們考慮到企業的債務使用時,我們首先將現金和債務一起考慮。
What Is Weatherford International's Debt?
Weatherford International的債務是什麼?
As you can see below, Weatherford International had US$1.59b of debt at June 2024, down from US$1.97b a year prior. However, it also had US$862.0m in cash, and so its net debt is US$726.0m.
正如下面所示,截至2024年6月,Weatherford International的債務爲1.59億美元,比一年前的1.97億美元有所下降。然而,其現金還有8620萬美元,因此其淨債務爲7260萬美元。
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A Look At Weatherford International's Liabilities
看看Weatherford International的負債情況
The latest balance sheet data shows that Weatherford International had liabilities of US$1.69b due within a year, and liabilities of US$2.18b falling due after that. On the other hand, it had cash of US$862.0m and US$1.37b worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$1.64b.
最新的資產負債表數據顯示,Weatherford International面臨的負債包括1.69億美元的流動負債,以及之後到期的21.8億美元的負債。另一方面,它有8620萬美元的現金和13.7億美元的應收賬款要在一年內到期。因此,其負債比其現金和(短期)應收賬款的總和多出1.64億美元。
While this might seem like a lot, it is not so bad since Weatherford International has a market capitalization of US$7.92b, and so it could probably strengthen its balance sheet by raising capital if it needed to. However, it is still worthwhile taking a close look at its ability to pay off debt.
雖然這看起來很多,但並不糟糕,因爲Weatherford International市值爲7.92億美元,因此如果需要,它可能可以通過募集資本來加強其資產負債表。然而,它仍然值得仔細評估其償還債務的能力。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
通過查看公司的淨債務與利息、稅、折舊、攤銷前利潤(EBITDA)之比以及它的利息費用(利息覆蓋率)可以衡量一個公司的債務負擔與收益能力。因此,我們考慮將債務與有無計算折舊和攤銷費用的收益相對比。
Weatherford International has net debt of just 0.57 times EBITDA, indicating that it is certainly not a reckless borrower. And this view is supported by the solid interest coverage, with EBIT coming in at 8.2 times the interest expense over the last year. In addition to that, we're happy to report that Weatherford International has boosted its EBIT by 38%, thus reducing the spectre of future debt repayments. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Weatherford International 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.
Weatherford International的淨債務只有0.57倍的EBITDA,表明其絕對不是一個魯莽的借款人。而且,實際利潤率良好,過去一年EBIT覆蓋利息支出的比率爲8.2倍。此外,我們很高興報道Weatherford International已經增加了38%的EBIT,從而減少了未來償還債務的風險。當分析債務水平時,資產負債表是顯而易見的起點。但最終,業務的未來盈利能力將決定Weatherford International能否隨着時間的推移增強其資產負債表。所以,如果你關注未來,可以查看這份免費的報告,其中顯示了分析師的盈利預測。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So it's worth checking how much of that EBIT is backed by free cash flow. Over the most recent three years, Weatherford International recorded free cash flow worth 62% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This free cash flow puts the company in a good position to pay down debt, when appropriate.
最後,雖然稅務人員可能喜歡會計利潤,但貸款人只接受切實的現金。因此,值得檢查有多少EBIT是由自由現金流支撐的。在過去三年中,Weatherford International錄得自由現金流價值相當於其EBIT的62%,這是正常的,因爲自由現金流不包括利息和稅費。這種自由現金流使該公司有能力在適當時期償還債務。
Our View
我們的觀點
The good news is that Weatherford International's demonstrated ability to grow its EBIT delights us like a fluffy puppy does a toddler. And that's just the beginning of the good news since its net debt to EBITDA is also very heartening. Zooming out, Weatherford International seems to use debt quite reasonably; and that gets the nod from us. After all, sensible leverage can boost returns on equity. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. For example, we've discovered 1 warning sign for Weatherford International that you should be aware of before investing here.
好消息是,Weatherford International證明了其增長EBIT的能力,這讓我們感到像軟綿綿的小狗一樣高興。而且,它的淨債務/EBITDA也非常令人欣慰。總體而言,Weatherford International似乎相當合理地使用債務;這使我們感到滿意。畢竟,明智的槓桿作用可以提高股本回報。毫無疑問,我們從資產負債表中了解到關於債務的大多數信息。但最終,每個公司都可能存在超出資產負債表之外的風險。例如,我們已經發現了一項警告信號,告訴你在投資這個地方前應該注意什麼。
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.
歸根結底,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,其中包括所有表現出盈利增長軌跡的公司。這是免費的。
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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。