We Think Transcat (NASDAQ:TRNS) Can Manage Its Debt With Ease
We Think Transcat (NASDAQ:TRNS) 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.' 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. As with many other companies Transcat, Inc. (NASDAQ:TRNS) makes use of debt. But should shareholders be worried about its use of debt?
由伯克希尔·哈撒韦公司的查理·芒格支持的外部基金经理李露对此毫不掩饰,他说:“最大的投资风险不是价格的波动,而是你是否会遭受永久的资本损失。”当我们思考一家公司的风险有多大时,我们总是喜欢考虑其债务的用途,因为债务过载可能导致破产。与许多其他公司一样,Transcat, Inc.(纳斯达克股票代码:TRNS)也使用债务。但是,股东是否应该担心其债务的使用?
What Risk Does Debt Bring?
债务会带来什么风险?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
当企业无法通过自由现金流或以诱人的价格筹集资金来轻松履行这些义务时,债务和其他负债就会成为风险。最终,如果公司无法履行偿还债务的法律义务,股东可能会一无所获。但是,更常见(但仍然令人痛苦)的情况是,它必须以低廉的价格筹集新的股本,从而永久稀释股东。当然,债务的好处在于它通常代表廉价资本,尤其是当它以高回报率进行再投资的能力取代公司的稀释时。在考虑企业使用多少债务时,要做的第一件事是同时考虑其现金和债务。
How Much Debt Does Transcat Carry?
Transcat 背负了多少债务?
You can click the graphic below for the historical numbers, but it shows that Transcat had US$3.58m of debt in June 2024, down from US$48.4m, one year before. But it also has US$22.7m in cash to offset that, meaning it has US$19.1m net cash.
你可以点击下图查看历史数字,但它显示Transcat在2024年6月有358万美元的债务,低于一年前的4,840万美元。但它也有2,270万美元的现金可以抵消这一点,这意味着它的净现金为1,910万美元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240814/0-1534e85595cb1adeebe26d1e697187f0-0-60d11dd921ae59fd282b465b424e2cf2.png/big)
How Healthy Is Transcat's Balance Sheet?
Transcat 的资产负债表有多健康?
According to the last reported balance sheet, Transcat had liabilities of US$31.8m due within 12 months, and liabilities of US$29.6m due beyond 12 months. Offsetting this, it had US$22.7m in cash and US$48.4m in receivables that were due within 12 months. So it can boast US$9.69m more liquid assets than total liabilities.
根据上次报告的资产负债表,Transcat的负债为3180万美元,12个月后到期的负债为2960万美元。与此相抵消的是,它有2270万美元的现金和4,840万美元的应收账款将在12个月内到期。因此,它拥有比总负债多969万美元的流动资产。
Having regard to Transcat's size, it seems that its liquid assets are well balanced with its total liabilities. So it's very unlikely that the US$1.06b company is short on cash, but still worth keeping an eye on the balance sheet. Succinctly put, Transcat boasts net cash, so it's fair to say it does not have a heavy debt load!
考虑到Transcat的规模,其流动资产与总负债似乎保持了良好的平衡。因此,这家价值10.6亿美元的公司现金短缺的可能性很小,但仍然值得关注资产负债表。简而言之,Transcat拥有净现金,因此可以公平地说,它没有沉重的债务负担!
Also positive, Transcat grew its EBIT by 25% in the last year, and that should make it easier to pay down debt, going forward. 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 Transcat'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.
同样乐观的是,Transcat去年其息税前利润增长了25%,这将使未来更容易偿还债务。资产负债表显然是分析债务时需要关注的领域。但是,未来的收益将决定Transcat未来维持健康资产负债表的能力。因此,如果你想看看专业人士的想法,你可能会发现这份关于分析师利润预测的免费报告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. Transcat 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, Transcat produced sturdy free cash flow equating to 72% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.
但是我们最终的考虑因素也很重要,因为公司无法用纸面利润来偿还债务;它需要冷硬现金。Transcat的资产负债表上可能有净现金,但研究该企业将其利息税前收益(EBIT)转换为自由现金流的效果仍然很有趣,因为这将影响其对债务的需求和管理能力。在过去三年中,Transcat产生了稳健的自由现金流,相当于其息税前利润的72%,与我们的预期差不多。这种冷硬现金意味着它可以在需要时减少债务。
Summing Up
总结
While we empathize with investors who find debt concerning, you should keep in mind that Transcat has net cash of US$19.1m, as well as more liquid assets than liabilities. And it impressed us with its EBIT growth of 25% over the last year. So we don't think Transcat's use of debt is risky. 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 example, we've discovered 2 warning signs for Transcat that you should be aware of before investing here.
虽然我们同情那些认为债务令人担忧的投资者,但您应该记住,Transcat的净现金为1,910万美元,流动资产比负债还多。它的息税前利润比去年增长了25%,给我们留下了深刻的印象。因此,我们认为Transcat使用债务没有风险。在分析债务水平时,资产负债表是显而易见的起点。但是,并非所有的投资风险都存在于资产负债表中,远非如此。例如,我们发现了Transcat的两个警告信号,在这里投资之前,您应该注意这些信号。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
当一切都说完之后,有时更容易将注意力集中在甚至不需要债务的公司上。读者现在可以100%免费访问净负债为零的成长型股票清单。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。