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Here's Why Yinchuan Xinhua Commercial (Group) (SHSE:600785) Has A Meaningful Debt Burden

Here's Why Yinchuan Xinhua Commercial (Group) (SHSE:600785) Has A Meaningful Debt Burden

這就是銀川新華商業(集團)(SHSE: 600785)揹負沉重債務負擔的原因
Simply Wall St ·  2023/07/21 06:57

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the 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 Yinchuan Xinhua Commercial (Group) Co., Ltd. (SHSE:600785) makes use of debt. But should shareholders be worried about its use of debt?

大衛·伊本說得很好,他說:“波動性不是我們關心的風險。我們關心的是避免永久的資本損失。”當我們想到一家公司的風險有多大時,我們總是喜歡看看它對債務的使用,因爲債務超負荷會導致破產。和許多其他公司一樣 銀川新華商業(集團)有限公司 (SHSE: 600785)利用了債務。但是,股東們應該擔心它會使用債務嗎?

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 common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. 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 examine debt levels, we first consider both cash and debt levels, together.

債務爲企業提供幫助,直到企業難以用新的資本或自由現金流還清債務。最終,如果公司無法履行償還債務的法律義務,股東可能一無所有地離開。但是,更常見(但仍然令人痛苦)的情況是,它必須以低廉的價格籌集新的股權資本,從而永久稀釋股東。但是,通過取代稀釋,債務可以成爲需要資本以高回報率投資增長的企業的一個非常好的工具。當我們研究債務水平時,我們首先要同時考慮現金和債務水平。

See our latest analysis for Yinchuan Xinhua Commercial (Group)

查看我們對銀川新華商業(集團)的最新分析

What Is Yinchuan Xinhua Commercial (Group)'s Debt?

銀川新華商業(集團)的債務是多少?

As you can see below, at the end of March 2023, Yinchuan Xinhua Commercial (Group) had CN¥1.25b of debt, up from CN¥934.7m a year ago. Click the image for more detail. However, it does have CN¥735.4m in cash offsetting this, leading to net debt of about CN¥513.0m.

如下所示,截至2023年3月底,銀川新華商業(集團)的債務爲12.5億元人民幣,高於去年同期的9.347億元人民幣。點擊圖片了解更多詳情。但是,它確實有7.354億元人民幣的現金抵消了這一點,導致淨負債約爲5.13億元人民幣。

debt-equity-history-analysis
SHSE:600785 Debt to Equity History July 20th 2023
SHSE: 600785 債務轉股歷史 2023 年 7 月 20 日

How Healthy Is Yinchuan Xinhua Commercial (Group)'s Balance Sheet?

銀川新華商業(集團)的資產負債表有多健康?

Zooming in on the latest balance sheet data, we can see that Yinchuan Xinhua Commercial (Group) had liabilities of CN¥3.55b due within 12 months and liabilities of CN¥2.72b due beyond that. Offsetting these obligations, it had cash of CN¥735.4m as well as receivables valued at CN¥350.1m due within 12 months. So it has liabilities totalling CN¥5.18b more than its cash and near-term receivables, combined.

放大最新的資產負債表數據,我們可以看出,銀川新華商業(集團)在12個月內到期的負債爲35.5億元人民幣,此後到期的負債爲272億元人民幣。爲了抵消這些債務,它有7.354億元人民幣的現金以及價值3.501億元人民幣的應收賬款,這些應收賬款將在12個月內到期。因此,它的負債總額比其現金和短期應收賬款的總和多出51.8億人民幣。

Given this deficit is actually higher than the company's market capitalization of CN¥3.59b, we think shareholders really should watch Yinchuan Xinhua Commercial (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.

鑑於這一赤字實際上高於公司的市值35.9億人民幣,我們認爲股東們確實應該關注銀川新華商業(集團)的債務水平,就像家長第一次看孩子騎自行車一樣。在公司不得不迅速清理資產負債表的情況下,股東似乎很可能會遭受大規模的稀釋。

We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).

我們通過以下方法來衡量公司的債務負擔與其盈利能力:將其淨負債除以利息、稅項、折舊和攤銷前的收益(EBITDA),並計算其利息和稅前收益(EBIT)支付利息支出(利息保障)的難易程度。這種方法的優勢在於,我們既考慮了債務的絕對數量(包括淨負債與息稅折舊攤銷前利潤),也考慮了與該債務相關的實際利息支出(及其利息覆蓋率)。

Looking at its net debt to EBITDA of 1.4 and interest cover of 2.9 times, it seems to us that Yinchuan Xinhua Commercial (Group) is probably using debt in a pretty reasonable way. But the interest payments are certainly sufficient to have us thinking about how affordable its debt is. One way Yinchuan Xinhua Commercial (Group) could vanquish its debt would be if it stops borrowing more but continues to grow EBIT at around 13%, as it did over the last year. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Yinchuan Xinhua Commercial (Group)'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.

銀川新華商業(集團)的淨負債佔息稅折舊攤銷前利潤的1.4倍,利息覆蓋率爲2.9倍,在我們看來,銀川新華商業(集團)可能正在以相當合理的方式使用債務。但是利息支付肯定足以讓我們考慮其債務的負擔能力。銀川新華商業(集團)克服債務的一種方法是停止增加借款,但繼續像去年一樣將息稅前利潤增長至13%左右。資產負債表顯然是分析債務時需要關注的領域。但是,決定銀川新華商業(集團)未來保持健康資產負債表的能力最重要的是未來的收益。因此,如果你專注於未來,可以看看這個 免費的 顯示分析師盈利預測的報告。

Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Happily for any shareholders, Yinchuan Xinhua Commercial (Group) actually produced more free cash flow than EBIT over the last three years. That sort of strong cash generation warms our hearts like a puppy in a bumblebee suit.

最後,公司只能用冷硬現金償還債務,不能用會計利潤來償還債務。因此,我們顯然需要看看息稅前利潤是否帶來了相應的自由現金流。令所有股東高興的是,銀川新華商業(集團)在過去三年中產生的自由現金流實際上超過了息稅前利潤。這種強勁的現金創造就像穿着大黃蜂套裝的小狗一樣溫暖了我們的心。

Our View

我們的觀點

Neither Yinchuan Xinhua Commercial (Group)'s ability to handle its total liabilities nor its interest cover gave us confidence in its ability to take on more debt. But the good news is it seems to be able to convert EBIT to free cash flow with ease. Looking at all the angles mentioned above, it does seem to us that Yinchuan Xinhua Commercial (Group) is a somewhat risky investment as a result of its debt. That's not necessarily a bad thing, since leverage can boost returns on equity, but it is something to be aware of. 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. To that end, you should be aware of the 1 warning sign we've spotted with Yinchuan Xinhua Commercial (Group) .

銀川新華商業(集團)處理其總負債的能力和利息保障都沒有使我們對其承擔更多債務的能力充滿信心。但好消息是,它似乎能夠輕鬆地將息稅前利潤轉換爲自由現金流。從上述所有角度來看,在我們看來,銀川新華商業(集團)由於其債務,確實是一項風險較大的投資。這不一定是一件壞事,因爲槓桿可以提高股本回報率,但這是需要注意的事情。在分析債務水平時,資產負債表是顯而易見的起點。但是,並非所有的投資風險都存在於資產負債表中,遠非如此。爲此,你應該意識到 1 個警告標誌 我們在銀川新華商業(集團)見過面。

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.

畢竟,如果你對一家資產負債表堅如磐石的快速成長型公司更感興趣,那麼請立即查看我們的淨現金增長股票清單。

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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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Simply Wall St 的這篇文章本質上是籠統的。 我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。 它不構成買入或賣出任何股票的建議,也沒有考慮您的目標或財務狀況。我們的目標是爲您提供由基本面數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。簡而言之,華爾街在上述任何股票中都沒有頭寸。

譯文內容由第三人軟體翻譯。


以上內容僅用作資訊或教育之目的,不構成與富途相關的任何投資建議。富途竭力但無法保證上述全部內容的真實性、準確性和原創性。
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