Is Beken (SHSE:603068) Using Debt Sensibly?
Is Beken (SHSE:603068) Using Debt Sensibly?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' 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, Beken Corporation (SHSE:603068) does carry debt. But should shareholders be worried about its use of debt?
Why Does Debt Bring Risk?
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. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.
Check out our latest analysis for Beken
What Is Beken's Net Debt?
As you can see below, Beken had CN¥24.0m of debt at September 2022, down from CN¥64.9m a year prior. However, it does have CN¥1.04b in cash offsetting this, leading to net cash of CN¥1.01b.
SHSE:603068 Debt to Equity History November 17th 2022A Look At Beken's Liabilities
Zooming in on the latest balance sheet data, we can see that Beken had liabilities of CN¥247.0m due within 12 months and liabilities of CN¥13.5m due beyond that. Offsetting these obligations, it had cash of CN¥1.04b as well as receivables valued at CN¥123.6m due within 12 months. So it can boast CN¥899.6m more liquid assets than total liabilities.
It's good to see that Beken has plenty of liquidity on its balance sheet, suggesting conservative management of liabilities. Due to its strong net asset position, it is not likely to face issues with its lenders. Succinctly put, Beken boasts net cash, so it's fair to say it does not have a heavy debt load! When analysing debt levels, the balance sheet is the obvious place to start. But it is Beken's earnings that will influence how the balance sheet holds up in the future. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.
Over 12 months, Beken made a loss at the EBIT level, and saw its revenue drop to CN¥819m, which is a fall of 22%. To be frank that doesn't bode well.
So How Risky Is Beken?
By their very nature companies that are losing money are more risky than those with a long history of profitability. And in the last year Beken had an earnings before interest and tax (EBIT) loss, truth be told. And over the same period it saw negative free cash outflow of CN¥264m and booked a CN¥112m accounting loss. With only CN¥1.01b on the balance sheet, it would appear that its going to need to raise capital again soon. Even though its balance sheet seems sufficiently liquid, debt always makes us a little nervous if a company doesn't produce free cash flow regularly. 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. These risks can be hard to spot. Every company has them, and we've spotted 2 warning signs for Beken you should know about.
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.
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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.
馬克斯説得很好,他不是擔心股價波動,而是我擔心的是永久虧損的可能性……我認識的每個實際投資者都擔心。因此,當你評估一家公司的風險有多大時,聰明的投資者似乎知道債務--通常涉及破產--是一個非常重要的因素。重要的是貝肯公司(上海證券交易所:603068)確實揹負着債務。但股東是否應該擔心它的債務使用情況?
為什麼債務會帶來風險?
當一家企業無法輕鬆履行這些義務時,債務和其他債務就會變得有風險,無論是通過自由現金流還是通過以有吸引力的價格籌集資本。最終,如果公司不能履行其償還債務的法定義務,股東可能會一無所有地離開。儘管這並不常見,但我們確實經常看到負債累累的公司永久性地稀釋股東的權益,因為貸款人迫使他們以令人沮喪的價格籌集資金。然而,通過取代稀釋,對於需要資本投資於高回報率增長的企業來説,債務可以成為一個非常好的工具。當我們考慮一家公司的債務用途時,我們首先會把現金和債務放在一起看。
查看我們對Beken的最新分析
貝肯的淨債務是多少?
如下所示,截至2022年9月,Beken的債務為2400萬元人民幣,低於一年前的6490萬元人民幣。然而,它確實有10.4億加元的現金抵消了這一點,導致淨現金10.1億加元。
上證綜指:603068債轉股歷史2022年11月17日看看Beken的負債情況
放大最新的資產負債表數據,我們可以看到,Beken有2.47億元的負債在12個月內到期,還有1350萬元的負債在12個月內到期。作為這些債務的抵消,該公司有10.4億加元的現金以及價值1.236億加元的應收賬款在12個月內到期。因此,它的流動資產比總計負債。
很高興看到Beken的資產負債表上有充足的流動性,這表明它對負債的管理是保守的。由於其強大的淨資產狀況,它不太可能面臨與貸款人的問題。簡而言之,Beken擁有淨現金,所以公平地説,它沒有沉重的債務負擔!在分析債務水平時,資產負債表顯然是一個起點。但貝肯的收益將影響未來資產負債表的表現。因此,如果你熱衷於瞭解更多關於它的收益,可能值得查看一下它的長期收益趨勢圖。
在12個月的時間裏,Beken在息税前利潤水平上出現了虧損,收入下降到8.19億加元,降幅為22%。坦率地説,這不是一個好兆頭。
那麼,貝肯的風險有多大呢?
就其本質而言,虧損的公司比那些長期盈利的公司風險更大。説實話,去年貝肯還出現了息税前利潤(EBIT)虧損。而在同一時期,它的自由現金流出為負2.64億加元,並計入了1.12億加元的會計損失。在資產負債表上只有10.1億元人民幣的情況下,它似乎很快就需要再次籌集資金。儘管一家公司的資產負債表似乎流動性充足,但如果一家公司不能定期產生自由現金流,債務總是會讓我們感到有點緊張。在分析債務水平時,資產負債表顯然是一個起點。但歸根結底,每家公司都可能包含存在於資產負債表之外的風險。這些風險可能很難發現。每家公司都有它們,我們已經發現貝肯的2個警告信號你應該知道。
總而言之,有時候專注於甚至不需要債務的公司會更容易。讀者可以訪問淨債務為零的成長型股票列表100%免費,現在。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
譯文內容由第三人軟體翻譯。
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