These 4 Measures Indicate That Cavco Industries (NASDAQ:CVCO) Is Using Debt Reasonably Well
These 4 Measures Indicate That Cavco Industries (NASDAQ:CVCO) Is Using Debt Reasonably Well
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a 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 Cavco Industries, Inc. (NASDAQ:CVCO) makes use of debt. But is this debt a concern to shareholders?
傳奇基金經理李錄(受到查理·曼格爾支持)曾說:「最大的投資風險不是價格的波動性,而是你是否會遭受永久性的資本損失。」當我們考慮一家公司的風險時,我們總是喜歡看它的債務使用情況,因爲債務過重可能導致破產。與許多其他公司一樣,卡寇工業股份有限公司(納斯達克代碼:CVCO)使用了債務。但是這筆債務對股東來說是否是一個問題呢?
When Is Debt Dangerous?
債務何時有危險?
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. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.
當債務和其他負債變得對業務風險時,當公司無法輕鬆履行這些義務時,會出現風險,無論是通過自由現金流還是以有吸引力的價格籌集資本。在最壞的情況下,如果公司無法償還債權人的債務,它可能會破產。儘管這不是太普遍,但我們經常看到企業因負債累累而「永久性稀釋」股東,因爲借款人迫使它們以苦澀的價格籌集資本。當然,債務的好處是它通常代表着便宜的資本,特別是當它代替了公司在具有高投資回報率的能力時的稀釋。當我們檢查債務水平時,我們首先考慮現金和債務水平。
What Is Cavco Industries's Net Debt?
卡寇工業的淨債務是多少?
The image below, which you can click on for greater detail, shows that at June 2024 Cavco Industries had debt of US$1.85m, up from US$1.69m in one year. However, it does have US$380.0m in cash offsetting this, leading to net cash of US$378.1m.
下圖是2024年6月卡寇工業的債務情況,你可以點擊放大查看。截至2024年6月,卡寇工業的債務爲185萬美元,比一年前的169萬美元增加了。然而,它有38000萬美元的現金來抵消這筆債務,導致淨現金爲37810萬美元。
![big](https://newsfile.futunn.com/public/NN-PersistNewsContentImage/7781/20240906/0-d079bc799b0f32efbbdaa70eec098a7c-0-31ea3e53ae2ee520dba4549f79b77205.png/big)
How Strong Is Cavco Industries' Balance Sheet?
卡寇工業的資產負債表有多強?
We can see from the most recent balance sheet that Cavco Industries had liabilities of US$296.0m falling due within a year, and liabilities of US$46.1m due beyond that. Offsetting these obligations, it had cash of US$380.0m as well as receivables valued at US$85.1m due within 12 months. So it can boast US$122.9m more liquid assets than total liabilities.
我們可以從最近的資產負債表中看到,卡寇工業有2.96億美元的短期到期負債,以及4.61億美元的長期到期負債。抵消這些債務的是,它有3.8億美元的現金,以及價值8.51億美元的應收賬款,在12個月內到期。因此,它擁有比總負債多1.229億美元的流動資產。
This surplus suggests that Cavco Industries has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that Cavco Industries has more cash than debt is arguably a good indication that it can manage its debt safely.
這一盈餘表明,卡寇工業的資產負債表比較保守,很可能可以輕易清除其債務。簡單來說,卡寇工業擁有比債務更多的現金,可以說是一個良好的跡象,表明它可以安全地管理其債務。
In fact Cavco Industries's saving grace is its low debt levels, because its EBIT has tanked 42% in the last twelve months. When it comes to paying off debt, falling earnings are no more useful than sugary sodas are for your health. 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 Cavco Industries'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,卡寇工業的救命稻草是其低債務水平,因爲過去12個月其息稅折舊攤銷前利潤(EBIt)下降了42%。在償還債務方面,下跌的收益和甜水汽一樣無濟於事。在分析債務時,資產負債表顯然是要重點關注的地方。但最終,決定卡寇工業能否保持健康的資產負債表的,更重要的是未來的收益。因此,如果你關注未來,可以看一下這份免費報告,其中包括分析師的利潤預測。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. Cavco Industries 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. Over the last three years, Cavco Industries recorded free cash flow worth a fulsome 83% of its EBIT, which is stronger than we'd usually expect. That positions it well to pay down debt if desirable to do so.
但我們最後的考慮也很重要,因爲一家公司無法用紙面利潤來支付債務;它需要現金。卡寇工業可能在資產負債表上有淨現金,但仍然有意思的是,看一下該企業將其息稅折舊攤銷前利潤(EBIT)轉化爲自由現金流的能力,因爲這將影響到它對債務的需求和管理能力。在過去的三年裏,卡寇工業的自由現金流相當於其EBIt的83%,這比我們通常預期的要強。這讓它有能力支付債務,如果有必要的話。
Summing Up
總之
While we empathize with investors who find debt concerning, you should keep in mind that Cavco Industries has net cash of US$378.1m, as well as more liquid assets than liabilities. The cherry on top was that in converted 83% of that EBIT to free cash flow, bringing in US$172m. So we don't have any problem with Cavco Industries's use of debt. Over time, share prices tend to follow earnings per share, so if you're interested in Cavco Industries, you may well want to click here to check an interactive graph of its earnings per share history.
雖然我們對於發現債務令人擔憂的投資者深表同情,但您應該記住,卡寇工業的淨現金爲37810萬美元,流動資產超過負債。值得一提的是,它將83%的EBIt轉化爲自由現金流,帶來了17200萬美元的現金流。所以我們對於卡寇工業的債務使用沒有任何問題。隨着時間的推移,股價往往會跟隨每股盈利的變化,所以如果您對卡寇工業感興趣,可能希望點擊這裏查看其每股盈利歷史的交互圖。
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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