These 4 Measures Indicate That China Satellite Communications (SHSE:601698) Is Using Debt Reasonably Well
These 4 Measures Indicate That China Satellite Communications (SHSE:601698) Is Using Debt Reasonably Well
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, China Satellite Communications Co., Ltd. (SHSE:601698) does carry debt. But the real question is whether this debt is making the company risky.
Berkshire Hathaway支持的外部基金经理Charlie Munger的Li Lu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。”可以看出,聪明的人知道,债务通常与破产有关,在评估一家公司的风险时,这是一个非常重要的因素。重要的是,中国卫星通信股份有限公司(SHSE:601698)存在债务。但真正的问题是,这些债务是否使公司具有风险。
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. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
债务会在企业没法通过新的资金或自由现金流偿还债务时给企业造成麻烦。如果一家公司无法履行偿还债务的法律义务,股东可能一无所获。然而,更常见(但仍然昂贵)的情况是企业必须以极低的价格发行股票,以永久稀释股东的权益,只为了支撑其资产负债表。当然,债务可以成为企业的重要工具,特别是资本密集型企业。考虑一家公司的债务水平时,第一步是同时考虑其现金和债务。
What Is China Satellite Communications's Debt?
中国卫星通信的债务是什么?
The image below, which you can click on for greater detail, shows that China Satellite Communications had debt of CN¥15.0m at the end of March 2024, a reduction from CN¥20.0m over a year. But it also has CN¥7.28b in cash to offset that, meaning it has CN¥7.26b net cash.
下面的图片显示,中国卫星通信在2024年3月底有1500万人民币的债务,比一年前的2000万人民币减少了。但是它也有72.8亿人民币的现金来抵消这笔债务,意味着它有72.6亿人民币的净现金。
![1724719858776](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240827/42902266-0-e16db0b669442189d6af1bb3da98e920.webp/bigjpg)
How Healthy Is China Satellite Communications' Balance Sheet?
中国卫通的资产负债表状况如何健康?
According to the last reported balance sheet, China Satellite Communications had liabilities of CN¥1.75b due within 12 months, and liabilities of CN¥1.29b due beyond 12 months. Offsetting these obligations, it had cash of CN¥7.28b as well as receivables valued at CN¥666.2m due within 12 months. So it can boast CN¥4.90b more liquid assets than total liabilities.
根据最近报告的资产负债表,中国卫通在12个月内有17.5亿人民币的负债,而超过12个月的负债为12.9亿人民币。抵消这些债务,它有72.8亿人民币的现金,以及66620万人民币应于12个月内收到的应收账款。因此,它拥有49亿人民币的流动资产超过总负债。
This short term liquidity is a sign that China Satellite Communications could probably pay off its debt with ease, as its balance sheet is far from stretched. Succinctly put, China Satellite Communications boasts net cash, so it's fair to say it does not have a heavy debt load!
这种短期流动性表明中国卫通可能可以轻松偿还其债务,因为其资产负债表还远未过度拉伸。简单地说,中国卫通拥有净现金,所以可以说它没有沉重的债务负担!
On the other hand, China Satellite Communications's EBIT dived 19%, over the last year. If that rate of decline in earnings continues, the company could find itself in a tight spot. The balance sheet is clearly the area to focus on when you are analysing debt. But it is China Satellite Communications's earnings that will influence how the balance sheet holds up in the future. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.
另一方面,中国卫通的税息折旧及摊销前利润(EBIt)在过去一年中下降了19%。如果收益下降的速度继续下去,该公司可能会面临困境。可以明确看出,当您分析债务时,资产负债表显然是重点关注的领域。但是,中国卫通的盈利情况将影响资产负债表未来的表现。因此,在考虑债务时,肯定值得关注盈利趋势。点击此处查看交互式快照。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. China Satellite Communications 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. In the last three years, China Satellite Communications created free cash flow amounting to 15% of its EBIT, an uninspiring performance. That limp level of cash conversion undermines its ability to manage and pay down debt.
最后,公司只能用冷硬现金而不是会计利润偿还债务。中国卫通在资产负债表上可能有净现金,但查看业务将其税息折旧及摊销前利润(EBIT)转换为自由现金流的能力有多好,仍然是一个有趣的问题,因为这将影响到其管理债务的需求和能力。在过去的三年中,中国卫通创造了相当于其税息折旧及摊销前利润15%的自由现金流,表现平平。这种低水平的现金转换能力削弱了其管理和偿还债务的能力。
Summing Up
总之
While it is always sensible to investigate a company's debt, in this case China Satellite Communications has CN¥7.26b in net cash and a decent-looking balance sheet. So we are not troubled with China Satellite Communications's debt use. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. To that end, you should be aware of the 2 warning signs we've spotted with China Satellite Communications .
虽然始终对公司的债务进行调查是明智的,但在这种情况下,中国卫通拥有72.6亿人民币的净现金和一份看起来不错的资产负债表。因此,我们对中国卫通的债务使用并不感到担忧。在分析债务水平时,资产负债表是显而易见的起点。但最终,每家公司都可能存在超出资产负债表之外的风险。为此,您应该意识到我们在中国卫通发现的2个警示信号。
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.
说到底,有时候更容易集中精力关注根本不需要债务的公司。读者可以免费访问零净债务增长股票列表。
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