Does Lenovo Group (HKG:992) Have A Healthy Balance Sheet?
Does Lenovo Group (HKG:992) Have A Healthy Balance Sheet?
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 Lenovo Group Limited (HKG:992) makes use of debt. But should shareholders be worried about its use of debt?
伯克郡哈撒韋所支持的外部基金經理利洛(Li Lu)坦言,'最大的投資風險不在於價格的波動性,而在於是否會遭受資本的永久損失。'當我們考慮一家公司的風險性時,我們總是喜歡從其債務的使用情況來切入,因爲債務過載可能導致滅頂之災。與許多其他公司一樣,聯想集團(HKG:992)也利用了債務。但股東們是否應該擔心其債務的使用呢?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
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, 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.
債務在企業遇到償還困難時可以提供幫助,要麼通過新的資本,要麼通過自由現金流。最終,如果公司無法履行償還債務的法定義務,股東可能一無所有。然而,更頻繁(但仍然代價高昂)的情況是,公司必須以低廉的價格發行股票,從而永久稀釋股東的利益,以穩定其資產負債表。當然,債務的好處是它通常代表了廉價的資本,尤其是當它取代了公司能夠以高回報率重新投資的稀釋時。在考慮公司的債務水平時,第一步是考慮其現金和債務的總體情況。
What Is Lenovo Group's Debt?
聯想集團的債務是什麼?
The image below, which you can click on for greater detail, shows that Lenovo Group had debt of US$3.62b at the end of June 2024, a reduction from US$3.97b over a year. But on the other hand it also has US$4.02b in cash, leading to a US$401.0m net cash position.
下面的圖片(點擊可放大)顯示,截至2024年6月底,聯想集團的債務爲36.2億美元,較去年同期的39.7億美元有所減少。但另一方面,它也有40.2億美元的現金,形成淨現金40100萬美元。
![1725150002681](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240901/43152391-0-2086d4198e827d350897321d213273e3.webp/bigjpg)
How Healthy Is Lenovo Group's Balance Sheet?
聯想集團的資產負債表有多健康?
The latest balance sheet data shows that Lenovo Group had liabilities of US$28.8b due within a year, and liabilities of US$5.58b falling due after that. Offsetting these obligations, it had cash of US$4.02b as well as receivables valued at US$11.4b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$19.0b.
最新的資產負債表數據顯示,聯想集團一年內到期的負債爲288億美元,之後到期的負債爲558億美元。抵消這些義務,它有40.2億美元的現金以及價值114億美元的應收款項,應於12個月內到期。因此,其負債比其現金和(短期)應收款項的總和高出190億美元。
Given this deficit is actually higher than the company's massive market capitalization of US$15.3b, we think shareholders really should watch Lenovo Group's debt levels, like a parent watching their child ride a bike for the first time. In the scenario where the company had to clean up its balance sheet quickly, it seems likely shareholders would suffer extensive dilution. Given that Lenovo Group has more cash than debt, we're pretty confident it can handle its debt, despite the fact that it has a lot of liabilities in total.
考慮到這個赤字實際上比公司153億美元的市值還要高,我們認爲股東們確實應該像父母看着孩子第一次騎自行車那樣留意聯想集團的債務水平。在公司迫切需要清理資產負債表的情況下,股東們很可能會遭受嚴重的稀釋。鑑於聯想集團的現金多於債務,我們非常有信心它能夠處理好債務,儘管它總體上有很多負債。
While Lenovo Group doesn't seem to have gained much on the EBIT line, at least earnings remain stable for now. 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 Lenovo Group 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.
雖然聯想集團在EBIt線上似乎沒有獲得太多,但至少收益目前保持穩定。毫無疑問,我們最多從資產負債表中了解債務情況。但最終業務未來的盈利能力將決定聯想集團能否隨着時間加強其資產負債表。因此,如果您關注未來,您可以查看這份免費報告,其中顯示了分析師的利潤預測。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. Lenovo Group 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. Over the most recent three years, Lenovo Group recorded free cash flow worth 71% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This cold hard cash means it can reduce its debt when it wants to.
最後,一家企業需要自由現金流來償還債務;會計利潤不夠用。聯想集團可能在資產負債表上有淨現金,但了解企業將其息稅前利潤(EBIT)轉化爲自由現金流的能力非常重要,因爲這將影響其對債務的需求和處理能力。在最近三年中,聯想集團錄得的自由現金流價值相當於其息稅前利潤(EBIT)的71%,這在正常範圍內,因爲自由現金流不包括利息和稅收。這筆現金意味着它能夠在需要時減少債務。
Summing Up
總之
Although Lenovo Group's balance sheet isn't particularly strong, due to the total liabilities, it is clearly positive to see that it has net cash of US$401.0m. And it impressed us with free cash flow of US$894m, being 71% of its EBIT. So we are not troubled with Lenovo Group's debt use. 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. To that end, you should be aware of the 1 warning sign we've spotted with Lenovo Group .
儘管聯想集團的資產負債表並不特別強勁,由於其總負債,但看到其淨現金達到40100萬美元顯然是積極的。而其自由現金流達到89400萬美元,佔EBIt的71%,給我們留下了深刻印象。因此,我們對聯想集團的債務使用並不感到困擾。毫無疑問,我們從資產負債表上了解到了最多關於債務。但最終,每家公司都可能面臨資產負債表以外的風險。爲此,您應該注意到我們發現的聯想集團的1個警示信號。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果在所有這些之後,您更感興趣的是具有堅實資產負債表的快速增長公司,那麼不要拖延,查看我們的淨現金增長股票列表。
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