Here's Why Zhejiang Publishing & Media (SHSE:601921) Can Manage Its Debt Responsibly
Here's Why Zhejiang Publishing & Media (SHSE:601921) Can Manage Its Debt Responsibly
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 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 Zhejiang Publishing & Media Co., Ltd. (SHSE:601921) makes use of debt. But is this debt a concern to shareholders?
一些人認爲,作爲投資者,最好的方式是將波動性而不是債務視爲風險,但禾倫·巴菲特曾經說過:“波動性與風險遠非同義詞。因此,當你考慮任何個股有多大風險時,顯然需要考慮債務,因爲過多的債務可能會拖垮一家公司。正如許多其他公司一樣,浙江出版傳媒股份有限公司(SHSE:601921)利用債務。但這種債務會引起股東的擔憂嗎?
When Is Debt A Problem?
什麼時候負債才是一個問題?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
一般來說,當公司無法輕鬆償還債務時,債務才會成爲真正的問題,無論是通過籌集資本還是通過自有現金流。資本主義的一部分是「創造性破壞」過程,即失敗的企業被它們的銀行家無情清算。然而,更常見(但仍然昂貴)的情況是,公司必須以低廉的股價稀釋股東權益,簡單地爲了控制債務。當然,很多公司使用債務來資助增長,而沒有任何負面後果。在考慮企業使用多少債務時,首先要做的事情是看看其現金和債務。
How Much Debt Does Zhejiang Publishing & Media Carry?
浙江出版傳媒承擔了多少債務?
As you can see below, at the end of September 2024, Zhejiang Publishing & Media had CN¥12.0m of debt, up from none a year ago. Click the image for more detail. However, it does have CN¥11.2b in cash offsetting this, leading to net cash of CN¥11.2b.
如下所示,在2024年9月底,浙江出版傳媒的債務爲1200萬人民幣,比一年前增加了。點擊圖像獲取更多詳細信息。不過,它有112億人民幣的現金抵消,導致淨現金爲112億人民幣。
How Healthy Is Zhejiang Publishing & Media's Balance Sheet?
浙江出版傳媒的資產負債表有多健康?
According to the last reported balance sheet, Zhejiang Publishing & Media had liabilities of CN¥9.10b due within 12 months, and liabilities of CN¥426.3m due beyond 12 months. Offsetting this, it had CN¥11.2b in cash and CN¥1.12b in receivables that were due within 12 months. So it can boast CN¥2.78b more liquid assets than total liabilities.
根據上一個報告的資產負債表顯示,浙江出版傳媒在12個月內到期的負債爲91億人民幣,12個月後到期的負債爲42630萬人民幣。抵消這些,公司擁有112億人民幣的現金和11.2億人民幣的應收賬款,這些應收賬款在12個月內到期。因此,公司的流動資產比總負債多出27.8億人民幣。
This excess liquidity suggests that Zhejiang Publishing & Media is taking a careful approach to debt. Due to its strong net asset position, it is not likely to face issues with its lenders. Simply put, the fact that Zhejiang Publishing & Media has more cash than debt is arguably a good indication that it can manage its debt safely.
這種過剩的流動性表明浙江出版傳媒在債務方面採取了謹慎的態度。由於其強大的淨資產狀況,該公司不太可能面臨與債權人的問題。簡而言之,浙江出版傳媒擁有比債務更多的現金是一個良好跡象,表明它能夠安全管理債務。
In fact Zhejiang Publishing & Media's saving grace is its low debt levels, because its EBIT has tanked 35% in the last twelve months. Falling earnings (if the trend continues) could eventually make even modest debt quite risky. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Zhejiang Publishing & Media'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.
事實上,浙江出版傳媒的救贖之處是其低債務水平,因爲其EBIt在過去十二個月中下降了35%。收入下滑(如果趨勢持續)最終甚至可能使一般債務變得相當危險。毫無疑問,我們從資產負債表中獲得有關債務的大部分信息。但更重要的是,未來收入將決定浙江出版傳媒未來保持健康資產負債表的能力。因此,如果您關注未來,您可以查看這份顯示分析師利潤預測的免費報告。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. While Zhejiang Publishing & Media 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. Over the last three years, Zhejiang Publishing & Media actually produced more free cash flow than EBIT. That sort of strong cash generation warms our hearts like a puppy in a bumblebee suit.
最後,雖然稅務部門可能喜歡會計利潤,但債權人只接受冷硬現金。儘管浙江出版傳媒在資產負債表上有淨現金,但仍值得關注其將利息和稅前利潤(EBIT)轉化爲自由現金流的能力,以幫助我們了解公司是如何快速地增加(或耗盡)現金餘額。在過去三年中,浙江出版傳媒實際產生的自由現金流比EBIt還要多。這種強勁的現金產生讓我們如同看到一隻穿着蜜蜂服的小狗一樣溫暖。
Summing Up
總之
While we empathize with investors who find debt concerning, you should keep in mind that Zhejiang Publishing & Media has net cash of CN¥11.2b, as well as more liquid assets than liabilities. And it impressed us with free cash flow of -CN¥76m, being 140% of its EBIT. So we don't think Zhejiang Publishing & Media'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 2 warning signs with Zhejiang Publishing & Media (at least 1 which is potentially serious) , and understanding them should be part of your investment process.
雖然我們理解投資者對負債感到擔憂,但您應該記住,浙江出版傳媒擁有112億人民幣的淨現金,以及比負債更多的流動資產。而且它的自由現金流爲負7600萬人民幣,是EBIt的140%。因此,我們認爲浙江出版傳媒的債務使用並不冒險。在分析債務水平時,資產負債表是一個明顯的起點。然而,並非所有的投資風險都存在於資產負債表之內 - 遠非如此。我們已經發現了浙江出版傳媒的2個警示信號(至少其中一個可能很嚴重),了解它們應該是您投資過程的一部分。
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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