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Sinolong New Materials (SZSE:301565) Seems To Use Debt Quite Sensibly

Sinolong New Materials (SZSE:301565) Seems To Use Debt Quite Sensibly

中龍新材料(SZSE:301565)似乎相當明智地使用債務
Simply Wall St ·  10/05 22:44

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 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. As with many other companies Sinolong New Materials Co., Ltd. (SZSE:301565) makes use of debt. But the real question is whether this debt is making the company risky.

伯克希爾哈撒韋的查理·芒格支持的外部基金經理李露在談到'最大的投資風險不在於價格的波動,而在於是否會承受永久性的資本損失'時毫不隱瞞。因此,當您考慮任何特定股票的風險性時,需要考慮債務,因爲過多的債務可能會拖垮一家公司。與許多其他公司一樣,新龍新材料股份有限公司(SZSE:301565)利用債務。但真正的問題是這些債務是否使公司變得具有風險。

What Risk Does Debt Bring?

債務帶來了什麼風險?

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. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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. When we examine debt levels, we first consider both cash and debt levels, together.

當一家公司不能通過自由現金流或以有吸引力的價格籌資來輕鬆地履行債務時,債務和其他負債就對其構成風險了。資本主義的一部分是無情地摧毀失敗的企業,但更常見(但仍然代價非常高昂的)情況是企業不得不以極低的價格發行股票,從而永久性地稀釋股東,並支撐其資產負債表。當然,債務可以成爲企業的一項重要工具,特別是那些資本重的企業。在審查債務水平時,我們首先考慮現金和債務水平兩個因素。

What Is Sinolong New Materials's Debt?

新龍新材料的負債情況是什麼?

As you can see below, at the end of June 2024, Sinolong New Materials had CN¥371.8m of debt, up from CN¥328.3m a year ago. Click the image for more detail. But it also has CN¥1.11b in cash to offset that, meaning it has CN¥743.2m net cash.

正如您在下面所看到的,在2024年6月底,新龍新材料的債務爲37180萬人民幣,較一年前的32830萬人民幣有所增加。單擊圖片以獲取更多詳細信息。但同時,它也有111億人民幣的現金來抵消,這意味着它淨現金74320萬人民幣。

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SZSE:301565 Debt to Equity History October 6th 2024
SZSE:301565債務-股本歷史數據 2024年10月6日

A Look At Sinolong New Materials' Liabilities

分析一下Sinolong新材料的負債情況

We can see from the most recent balance sheet that Sinolong New Materials had liabilities of CN¥1.11b falling due within a year, and liabilities of CN¥219.2m due beyond that. Offsetting these obligations, it had cash of CN¥1.11b as well as receivables valued at CN¥320.6m due within 12 months. So it can boast CN¥106.2m more liquid assets than total liabilities.

我們可以從最近的資產負債表中看出,Sinolong新材料有111億人民幣的一年內到期債務,以及21920萬人民幣的到期超過一年的債務。 抵消這些債務的是,它擁有111億人民幣的現金,以及12個月內到期的32060萬人民幣的應收賬款。 因此,它比總負債多擁有10620萬人民幣的流動資產。

Having regard to Sinolong New Materials' size, it seems that its liquid assets are well balanced with its total liabilities. So it's very unlikely that the CN¥8.80b company is short on cash, but still worth keeping an eye on the balance sheet. Simply put, the fact that Sinolong New Materials has more cash than debt is arguably a good indication that it can manage its debt safely.

考慮到Sinolong新材料的規模,其流動資產與總負債似乎是很平衡的。 因此,88億人民幣的公司很不可能現金短缺,但仍值得密切關注資產負債表。 簡而言之,Sinolong新材料比債務多現金這一事實,可以說是其能夠安全管理債務的一個良好跡象。

In fact Sinolong New Materials's saving grace is its low debt levels, because its EBIT has tanked 27% in the last twelve months. Falling earnings (if the trend continues) could eventually make even modest debt quite risky. When analysing debt levels, the balance sheet is the obvious place to start. But you can't view debt in total isolation; since Sinolong New Materials will need earnings to service that debt. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.

事實上,Sinolong新材料的救星在於其低債務水平,因爲其息稅前利潤在過去十二個月中下降了27%。 利潤下降(如果趨勢持續下去)最終可能使即使是適度的債務也變得相當有風險。 在分析債務水平時,資產負債表是顯而易見的起點。 但您不能將債務完全孤立地看待;因爲Sinolong新材料將需要盈利來償還債務。 因此,在考慮債務時,絕對值得關注盈利趨勢。 點擊此處查看互動快照。

Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. Sinolong New Materials 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, Sinolong New Materials produced sturdy free cash flow equating to 62% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.

最後,雖然稅務部門可能喜愛會計利潤,但債權人只接受冰冷的現金。 Sinolong新材料的資產負債表上可能有淨現金,但看看企業是如何將息稅前利潤(EBIT)轉化爲自由現金流的情況仍然很有趣,因爲這將影響其管理債務的需求和能力。 在過去三年裏,Sinolong新材料產生了堅實的自由現金流,相當於其EBIT的62%,大約符合我們的預期。 這筆冰冷的現金意味着它可以在需要時減少債務。

Summing Up

總之

While we empathize with investors who find debt concerning, you should keep in mind that Sinolong New Materials has net cash of CN¥743.2m, as well as more liquid assets than liabilities. So we don't have any problem with Sinolong New Materials's use of debt. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. We've identified 1 warning sign with Sinolong New Materials , and understanding them should be part of your investment process.

雖然我們理解投資者對債務感到擔憂,但您應該記住Sinolong新材料有74320萬人民幣的淨現金,以及比負債更多的流動資產。所以我們對Sinolong新材料使用債務並沒有任何問題。資產負債表明顯是分析債務時的重點。但最終,每家公司都可能存在超出資產負債表之外的風險。我們已經發現Sinolong新材料存在1個警示信號,了解這些信號應該是您投資過程中的一部分。

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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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。

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