These 4 Measures Indicate That Utz Brands (NYSE:UTZ) Is Using Debt Reasonably Well
These 4 Measures Indicate That Utz Brands (NYSE:UTZ) Is Using Debt Reasonably Well
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. We can see that Utz Brands, Inc. (NYSE:UTZ) does use debt in its business. But the more important question is: how much risk is that debt creating?
霍華德·馬克斯很好地表達了這一點,他說,與其擔心股價波動,不如擔心'永久損失的可能性...每個我認識的實際投資者都擔心。因此,聰明的錢知道,債務(通常涉及破產)是評估公司風險時的一個非常重要因素。我們可以看到Utz Brands, Inc.(紐交所: UTZ)在其業務中使用債務。但更重要的問題是:這些債務會帶來多少風險呢?
What Risk Does Debt Bring?
What Risk Does Debt Bring?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. If things get really bad, the lenders can take control of the business. 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. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
一般來說,只有在公司無法輕鬆償還債務時,債務才會成爲真正的問題,無論是通過籌集資本還是通過自身的現金流。如果情況變得非常糟糕,貸款人可以控制企業。然而,更常見(但仍然痛苦的)情況是,它必須以低價籌集新的股本資本,從而永久性地稀釋股東的權益。話雖如此,最常見的情況是,公司合理地管理債務 - 並以其自身的優勢。在考慮企業使用多少債務時,首要任務是查看其現金和債務。
What Is Utz Brands's Net Debt?
Utz Brands的淨債務是多少?
You can click the graphic below for the historical numbers, but it shows that Utz Brands had US$796.8m of debt in September 2024, down from US$882.5m, one year before. However, it does have US$64.9m in cash offsetting this, leading to net debt of about US$732.0m.
您可以點擊下面的圖表查看歷史數據,但顯示出Utz Brands在2024年9月的債務爲79680萬美元,低於一年前的88250萬美元。不過,它確實有6490萬美元的現金來抵消這個債務,導致淨債務約爲73200萬美元。
How Healthy Is Utz Brands' Balance Sheet?
utz brands的資產負債表有多健康?
According to the last reported balance sheet, Utz Brands had liabilities of US$285.4m due within 12 months, and liabilities of US$974.0m due beyond 12 months. On the other hand, it had cash of US$64.9m and US$137.5m worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$1.06b.
根據最近一份披露的資產負債表,utz brands的短期負債爲28540萬美元,超過12個月到期的長期負債爲97400萬美元。 另一方面,utz brands手頭有6490萬美元的現金和13750萬美元的應收款項在一年內到期。 因此,其負債比現金和(短期)應收款項總和多10.6億美元。
While this might seem like a lot, it is not so bad since Utz Brands has a market capitalization of US$2.43b, and so it could probably strengthen its balance sheet by raising capital if it needed to. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.
雖然這看起來似乎很多,但由於utz brands的市值爲24.3億美元,所以如果需要的話,它可能通過發行股本來加強資產負債表。 但我們絕對要保持警惕,以避免債務帶來過多風險。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
爲了對公司的債務相對於其收益進行規模適應,我們計算其淨債務與利息、稅、折舊和攤銷前收益(EBITDA)之比及其稅前收益(EBIT)與利息支出之比(利息保障倍數)。因此,我們既考慮到不包括折舊和攤銷費用在內的收益,又包括折舊和攤銷費用的收益相對於債務。
Weak interest cover of 1.1 times and a disturbingly high net debt to EBITDA ratio of 5.7 hit our confidence in Utz Brands like a one-two punch to the gut. This means we'd consider it to have a heavy debt load. Looking on the bright side, Utz Brands boosted its EBIT by a silky 65% in the last year. Like the milk of human kindness that sort of growth increases resilience, making the company more capable of managing debt. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Utz Brands's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
淨息稅前利潤(EBIt)覆蓋率只有1.1倍,淨負債與EBITDA比率高達5.7,這給utz brands帶來了不小的壓力。這意味着我們認爲它負債較重。 從積極的一面看,utz brands去年EBIt增長了驚人的65%。像人類善意的牛奶一樣,這種增長將增加韌性,使公司更有能力管理債務。 毫無疑問,我們從資產負債表上了解債務的大部分情況。但最終,決定utz brands未來能否保持健康資產負債表的是未來收益。所以,如果你想知道專業人士的看法,你可能會覺得對分析師利潤預測的免費報告很有意思。
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. Over the last two years, Utz Brands recorded free cash flow worth a fulsome 86% of its EBIT, which is stronger than we'd usually expect. That positions it well to pay down debt if desirable to do so.
最後,一家公司只能用實打實的現金償還債務,而不是利潤賬面數字。 因此,我們需要明確看看這個EBIt是否帶來相應的自由現金流。 在過去兩年中,utz brands的自由現金流價值相當於其EBIt的86%,這比我們通常的預期要強。這使其在需要時更有能力償還債務。
Our View
我們的觀點
We weren't impressed with Utz Brands's net debt to EBITDA, and its interest cover made us cautious. But its conversion of EBIT to free cash flow was significantly redeeming. When we consider all the elements mentioned above, it seems to us that Utz Brands is managing its debt quite well. But a word of caution: we think debt levels are high enough to justify ongoing monitoring. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. We've identified 1 warning sign with Utz Brands , and understanding them should be part of your investment process.
我們對utz brands的淨債務/EBITDA比率和利息保障倍數並不滿意。但它將EBIT轉換爲自由現金流的能力讓我們謹慎樂觀。綜合考慮以上提到的所有因素,我們認爲utz brands在管理債務方面做得相當不錯。但需要謹慎的是:我們認爲債務水平足夠高,足以證明需要持續監控。當您分析債務時,資產負債表顯然是需要重點關注的領域。然而,並不是所有的投資風險都存在於資產負債表上 - 遠非如此。我們已經找到了utz brands的一個警示信號,並了解它們應該成爲您投資過程的一部分。
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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