Even though Anchun International Holdings Ltd.'s (SGX:BTX) recent earnings release was robust, the market didn't seem to notice. Investors are probably missing some underlying factors which are encouraging for the future of the company.
See our latest analysis for Anchun International Holdings
SGX:BTX Earnings and Revenue History August 17th 2022
Examining Cashflow Against Anchun International Holdings' Earnings
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF.
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
Over the twelve months to June 2022, Anchun International Holdings recorded an accrual ratio of -0.25. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. Indeed, in the last twelve months it reported free cash flow of CN¥47m, well over the CN¥14.5m it reported in profit. Anchun International Holdings shareholders are no doubt pleased that free cash flow improved over the last twelve months.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Anchun International Holdings.
Our Take On Anchun International Holdings' Profit Performance
As we discussed above, Anchun International Holdings' accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Because of this, we think Anchun International Holdings' underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! And it's also positive that the company showed enough improvement to book a profit this year, after losing money last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Case in point: We've spotted 2 warning signs for Anchun International Holdings you should be mindful of and 1 of these bad boys is potentially serious.
Today we've zoomed in on a single data point to better understand the nature of Anchun International Holdings' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
尽管安春国际控股有限公司's(新加坡证券交易所股票代码:BTX)最近发布的财报表现强劲,市场似乎没有注意到。投资者可能遗漏了一些对公司未来来说令人鼓舞的潜在因素。
查看我们对安春国际控股的最新分析
新加坡交易所:BTX 收益和收入历史记录 2022年8月17日
根据安春国际控股的收益研究现金流
用于衡量公司将其利润转化为自由现金流(FCF)的效果的一个关键财务比率是应计比率。为了获得应计比率,我们首先从一段时间内的利润中减去FCF,然后将该数字除以该期间的平均运营资产。该比率向我们显示了公司的利润超过其FCF的程度。
这意味着负应计比率是一件好事,因为它表明该公司带来的自由现金流比其利润所暗示的要多。这并不意味着我们应该担心应计比率为正,但值得注意的是,应计比率相当高的地方。值得注意的是,有一些学术证据表明,总的来说,高应计率对短期利润来说是个坏兆头。
在截至2022年6月的十二个月中,安春国际控股的应计比率为-0.25。这意味着它的现金转化率非常好,而且其去年的收益实际上大大低估了其自由现金流。事实上,在过去的十二个月中,它报告的自由现金流为4700万元人民币,远远超过其公布的利润1450万元人民币。毫无疑问,安春国际控股的股东对过去十二个月自由现金流的改善感到高兴。
注意:我们始终建议投资者检查资产负债表的实力。点击此处查看我们对安春国际控股的资产负债表分析。
我们对安春国际控股盈利表现的看法
正如我们上面讨论的那样,安春国际控股的应计比率表明利润向自由现金流的强劲转换,这对公司来说是一个积极的利好。正因为如此,我们认为安春国际控股的基础盈利潜力与法定利润看上去一样好,甚至可能更好!在去年亏损之后,该公司表现出了足够的改善,今年实现了盈利,这也是一个积极的因素。当然,我们只是在分析其收益时才浮出水面;人们还可以考虑利润率、预测增长和投资回报率等因素。请记住,在分析股票时,值得注意所涉及的风险。一个很好的例子:我们已经发现了安春国际控股的两个警告信号,你应该注意其中一个坏小伙子可能很严重。
今天,我们放大了单一数据点,以更好地了解安春国际控股利润的性质。但是,如果你能够将注意力集中在细节上,总会有更多的事情需要发现。有些人认为高股本回报率是优质业务的好兆头。因此,你可能希望看到这份免费收藏的拥有高股本回报率的公司,或者这份内部人士正在购买的股票清单。
对这篇文章有反馈吗?对内容感到担忧?直接联系我们。 或者,给编辑团队 (at) simplywallst.com 发送电子邮件。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。