Is Snap-on (NYSE:SNA) A Risky Investment?
Is Snap-on (NYSE:SNA) A Risky Investment?
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.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Snap-on Incorporated (NYSE:SNA) does carry debt. But is this debt a concern to shareholders?
霍華德·馬克斯表達得很好,他說,與其擔心股價波動,『永久性損失的可能性是我擔心的風險...我所知道的每位實際投資者都在擔心這個。』 當您評估風險時,考慮一家公司的資產負債表是很自然的,因爲債務往往會在業務倒閉時涉及。值得注意的是,實耐寶公司(紐交所:SNA) 確實存在債務。 但這些債務會讓股東擔憂嗎?
When Is Debt A Problem?
什麼時候負債才是一個問題?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. 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.
債務在企業遇到支付困難時,通過新資本或自由現金流進行協助。如果情況變得非常糟糕,放貸人可能會控制企業。雖然這種情況並不常見,但我們經常看到負債公司永久稀釋股東權益,因爲放貸人強迫它們以虧損價格籌集資本。然而,通過替代稀釋,債務可以成爲那些需要資本以高回報率投資增長的企業的極好工具。在考慮一家公司使用債務時,我們首先看現金和債務的組合。
What Is Snap-on's Net Debt?
實耐寶的淨債務是多少?
The chart below, which you can click on for greater detail, shows that Snap-on had US$1.20b in debt in September 2024; about the same as the year before. However, it does have US$1.31b in cash offsetting this, leading to net cash of US$113.6m.
下面的圖表顯示,您可以點擊查看更多詳細信息,顯示實耐寶在2024年9月有12億美元的債務;與前一年持平。然而,它也擁有13.1億美元的現金來抵銷這筆債務,導致淨現金爲11360萬美元。
How Strong Is Snap-on's Balance Sheet?
實耐寶的資產負債表有多強?
The latest balance sheet data shows that Snap-on had liabilities of US$956.4m due within a year, and liabilities of US$1.50b falling due after that. Offsetting these obligations, it had cash of US$1.31b as well as receivables valued at US$800.5m due within 12 months. So it has liabilities totalling US$341.9m more than its cash and near-term receivables, combined.
最新的資產負債表數據顯示,實耐寶短期內到期的負債爲95640萬元美元,而隨後將到期的負債爲15億美元。 抵消這些義務的是,它手頭有13.1億美元現金以及12個月內到期的價值80050萬美元的應收賬款。 因此,它的負債總額爲34190萬美元,超過了其現金和短期應收賬款的合計。
This state of affairs indicates that Snap-on's balance sheet looks quite solid, as its total liabilities are just about equal to its liquid assets. So it's very unlikely that the US$17.1b company is short on cash, but still worth keeping an eye on the balance sheet. While it does have liabilities worth noting, Snap-on also has more cash than debt, so we're pretty confident it can manage its debt safely.
這種狀況表明,實耐寶的資產負債表看起來相當穩固,因爲其總負債幾乎等於其流動資產。 因此,這家價值171億美元的公司很不可能缺乏現金,但仍值得關注資產負債表。 儘管它有值得注意的負債,實耐寶也擁有比債務更多的現金,因此我們相當有信心它能安全管理債務。
The good news is that Snap-on has increased its EBIT by 4.4% over twelve months, which should ease any concerns about debt repayment. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Snap-on can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
好消息是,實耐寶過去十二個月將其EBIt增加了4.4%,這應該可以緩解對償還債務的擔憂。 當分析債務水平時,資產負債表是顯而易見的起點。 但最終業務的未來盈利能力將決定實耐寶是否能逐漸加強其資產負債表。 因此,如果您想知道專業人士的看法,您可能會發現分析師盈利預測的這份免費報告很有趣。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. Snap-on 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. During the last three years, Snap-on produced sturdy free cash flow equating to 69% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.
最後,一家企業需要自由現金流來償還債務;會計利潤並不能滿足這一需求。 實耐寶在資產負債表中可能擁有淨現金,但仍值得關注的是它如何將稅前利潤(EBIT)轉化爲自由現金流,因爲這將影響其管理債務的需求和能力。 在過去的三年中,實耐寶產生了強勁的自由現金流,相當於其稅前利潤的69%,符合我們的預期。 這筆冷硬現金意味着它可以在需要時減少債務。
Summing Up
總之
We could understand if investors are concerned about Snap-on's liabilities, but we can be reassured by the fact it has has net cash of US$113.6m. The cherry on top was that in converted 69% of that EBIT to free cash flow, bringing in US$1.1b. So we don't think Snap-on's use of debt is risky. 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. For instance, we've identified 1 warning sign for Snap-on that you should be aware of.
我們可以理解投資者對實耐寶的負債感到擔憂,但事實上,它擁有淨現金11360萬美元,這讓我們感到放心。最令人滿意的是,它將其EBIT的69%轉化爲自由現金流,帶來11億美元。因此,我們認爲實耐寶的負債使用並不冒險。在分析負債水平時,資產負債表是明顯的起點。但最終,每家公司都可能存在超越資產負債表之外的風險。例如,我們已經發現實耐寶存在1個警示信號,您應該注意。
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
歸根結底,專注於沒有淨債務的公司往往更好。您可以訪問我們的特別列表,其中包括所有表現出盈利增長軌跡的公司。這是免費的。
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