These 4 Measures Indicate That CRRC (SHSE:601766) Is Using Debt Safely
These 4 Measures Indicate That CRRC (SHSE:601766) Is Using Debt Safely
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' 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, CRRC Corporation Limited (SHSE:601766) does carry debt. But is this debt a concern to shareholders?
有人認爲,作爲投資者,波動性而不是債務是思考風險的最佳方式,但禾倫·巴菲特曾經說過,「波動性遠非風險的同義詞」。因此,看起來明智的投資者知道,評估一家公司的風險有多重要時,債務是一個非常重要的因素,因爲債務通常與破產有關。重要的是,中國中車股份有限公司(SHSE:601766)確實有債務。但這個債務是否會引起股東的擔憂呢?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. If things get really bad, the lenders can take control of the business. 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. 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 step when considering a company's debt levels is to consider its cash and debt together.
債務是幫助企業增長的工具,但如果一家企業無法償還債務,那麼它就處於債權人的掌握之中。如果情況變得非常糟糕,債權人可以接管企業。然而,更頻繁(但仍然代價高昂)的情況是一家公司必須以低價發行股票來穩定其資產負債表,從而永久性地稀釋股東的權益。當然,債務的好處是,它通常代表着廉價的資本,特別是當它代替稀釋的公司具有以高回報率進行再投資的能力時。在考慮一家公司的債務水平時,首先要考慮其現金和債務的總體情況。
What Is CRRC's Debt?
中國中車的債務是什麼?
You can click the graphic below for the historical numbers, but it shows that CRRC had CN¥14.9b of debt in June 2024, down from CN¥32.4b, one year before. But on the other hand it also has CN¥55.5b in cash, leading to a CN¥40.6b net cash position.
您可以點擊下面的圖表查看歷史數據,但數據顯示,CRRC於2024年6月的債務爲149億人民幣,而一年前是324億人民幣。不過,另一方面,它也有555億人民幣的現金,從而形成了406億人民幣的淨現金位置。
![1724633708015](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240826/42841680-0-d51b495005aa26ca51fa1e6e95131bfb.webp/bigjpg)
How Healthy Is CRRC's Balance Sheet?
中國中車的資產負債表有多健康?
Zooming in on the latest balance sheet data, we can see that CRRC had liabilities of CN¥255.6b due within 12 months and liabilities of CN¥24.0b due beyond that. Offsetting these obligations, it had cash of CN¥55.5b as well as receivables valued at CN¥158.0b due within 12 months. So it has liabilities totalling CN¥66.1b more than its cash and near-term receivables, combined.
深入了解最新的資產負債表數據,我們可以看到中國中車在12個月內到期的負債爲2556億人民幣,超過12個月到期的負債爲240億人民幣。 抵消這些責任,它擁有555億人民幣的現金以及價值1580億人民幣的應收賬款。 因此,它的負債加起來比現金和短期應收賬款還多661億人民幣。
This deficit isn't so bad because CRRC is worth a massive CN¥217.8b, 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. While it does have liabilities worth noting, CRRC also has more cash than debt, so we're pretty confident it can manage its debt safely.
這個赤字並不那麼糟糕,因爲中國中車的價值達到了2178億人民幣,因此可能能夠籌集足夠的資本來支持其資產負債表,如果有需要的話。 但我們絕對希望保持警惕,以防其債務帶來過多的風險。 雖然它確實有值得關注的負債,但中國中車的現金比債務多,所以我們相當有信心它能夠安全地管理其債務。
In addition to that, we're happy to report that CRRC has boosted its EBIT by 47%, thus reducing the spectre of future debt repayments. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine CRRC's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
除此之外,我們很高興地報告說,中國中車通過提高息稅折舊攤銷前利潤(EBIt)來降低未來債務償還的風險。 在分析債務水平時,資產負債表顯然是一個起點。 但最終決定中國中車能否維持健康資產負債表的能力的更多是未來的盈利。 因此,如果你關注未來,你可以查看這份顯示分析師盈利預測的免費報告。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. While CRRC has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. Happily for any shareholders, CRRC actually produced more free cash flow than EBIT over the last three years. That sort of strong cash generation warms our hearts like a puppy in a bumblebee suit.
最後,儘管稅務機關可能喜歡會計利潤,但放貸人只接受冷硬現金。 雖然中國中車的資產負債表上有淨現金,但仍然值得看一下其將息稅折舊攤銷前利潤(EBIT)轉化爲自由現金流的能力,以幫助我們了解它是如何迅速地積累(或侵蝕)現金餘額的。 令股東們高興的是,中國中車過去三年實際上產生比EBIT更多的自由現金流。 這種強勁的現金生成能力讓我們像在蜜蜂服裝裏的小狗一樣感到溫暖。
Summing Up
總之
While CRRC does have more liabilities than liquid assets, it also has net cash of CN¥40.6b. And it impressed us with free cash flow of CN¥22b, being 142% of its EBIT. So we don't think CRRC'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. We've identified 1 warning sign with CRRC , and understanding them should be part of your investment process.
雖然中國中車的負債超過了流動資產,但它也有它約爲406億人民幣的淨現金。並且它以約爲220億人民幣的自由現金流打動了我們,佔其EBIt的142%。因此我們認爲中國中車的債務使用並不具備風險。在分析債務水平時,資產負債表是一個明顯的起點。然而,並不是所有的投資風險都屬於資產負債表 - 遠非如此。我們已經發現了中國中車的1個警示,理解它們應該是你投資過程的一部分。
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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