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.' 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. We note that Hainan Haiqi Transportation Group Co.,Ltd. (SHSE:603069) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
When Is Debt Dangerous?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. 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. Of course, plenty of companies use debt to fund growth, without any negative consequences. When we examine debt levels, we first consider both cash and debt levels, together.
See our latest analysis for Hainan Haiqi Transportation GroupLtd
How Much Debt Does Hainan Haiqi Transportation GroupLtd Carry?
As you can see below, at the end of June 2022, Hainan Haiqi Transportation GroupLtd had CN¥320.9m of debt, up from CN¥140.3m a year ago. Click the image for more detail. However, it does have CN¥202.7m in cash offsetting this, leading to net debt of about CN¥118.2m.
SHSE:603069 Debt to Equity History October 22nd 2022
How Healthy Is Hainan Haiqi Transportation GroupLtd's Balance Sheet?
Zooming in on the latest balance sheet data, we can see that Hainan Haiqi Transportation GroupLtd had liabilities of CN¥638.7m due within 12 months and liabilities of CN¥343.4m due beyond that. Offsetting this, it had CN¥202.7m in cash and CN¥168.6m in receivables that were due within 12 months. So it has liabilities totalling CN¥610.8m more than its cash and near-term receivables, combined.
Given Hainan Haiqi Transportation GroupLtd has a market capitalization of CN¥7.19b, it's hard to believe these liabilities pose much threat. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse. There's no doubt that we learn most about debt from the balance sheet. But it is Hainan Haiqi Transportation GroupLtd'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.
In the last year Hainan Haiqi Transportation GroupLtd had a loss before interest and tax, and actually shrunk its revenue by 4.4%, to CN¥724m. That's not what we would hope to see.
Caveat Emptor
Over the last twelve months Hainan Haiqi Transportation GroupLtd produced an earnings before interest and tax (EBIT) loss. Indeed, it lost CN¥74m at the EBIT level. When we look at that and recall the liabilities on its balance sheet, relative to cash, it seems unwise to us for the company to have any debt. Quite frankly we think the balance sheet is far from match-fit, although it could be improved with time. Another cause for caution is that is bled CN¥255m in negative free cash flow over the last twelve months. So suffice it to say we do consider the stock to be risky. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. To that end, you should be aware of the 2 warning signs we've spotted with Hainan Haiqi Transportation GroupLtd .
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
霍華德·馬克斯（Howard Marks）說得很好，而不是擔心股價波動，而是「永久損失的可能性是我擔心的風險... 以及我認識的每個實際投資者擔心的風險。」當我們考慮一家公司有多危險時，我們總是喜歡看它對債務的使用，因為債務超載可能會導致廢墟。我們注意到 海南海祺交通集團股份有限公司, 有限公司 （SHET：603069）確實在其資產負債表上有債務。但股東是否應該擔心其使用債務呢？
什麼時候是債務危險？
債務是一種工具，以幫助企業成長, 但如果一個企業是不能償還其貸款人, 那麼它存在於他們的憐憫.如果事情變得非常糟糕，貸方可以採取業務的控制權。但是，更常見（但仍然痛苦）的情況是，它必須以低價籌集新的股本，從而永久稀釋股東。當然，許多公司利用債務來資助增長，沒有任何負面後果。當我們檢查債務水平時，我們首先考慮現金和債務水平，一起。
查看我們關於海南海旗交通集團的最新分析
海南海祺交通集團攜帶多少債務？
如下所示，2022 年 6 月底，海南海旗交通集團擁有 320.9 億元人民幣的債務，較一年前人民幣 140.3 萬元增加。單擊圖像以獲取更多詳細信息。但是，它的現金抵銷確實有 202.7 億元人民幣，從而導致淨債務約為 1182 億人民幣。
股東指數:603069 債務對股本歷史記錄 2022 年十月二十二日
海南海旗交通集團的資產負債表健康有多健康？
放大最新的資產負債表數據，我們可以看到，海南海祺交通集團在 12 個月內到期負債為 638.7 萬人民幣，超出此限額為人民幣 343.4 億元的負債。抵銷此情況，該公司在 12 個月內到期的應收帳款中有 2 億 2 千 2 千 7 萬人民幣的現金和 1 億 6 千萬人民幣。因此，它的負債總額超過了現金和近期應收帳款的總額為 610.8 億元。
鑑於海南海旗交通集團的市值為 7 億元人民幣，因此很難相信這些債務構成了很大的威脅。話雖如此，很明顯，我們應該繼續監視其資產負債表，以免它變得更糟。毫無疑問，我們從資產負債表中了解到最多關於債務的知識。但是，海南海祺交通 GroUPLTD 的盈利將影響資產負債表未來的持有方式。因此，如果您熱衷於發現更多有關其收益的信息，則可能值得查看此圖表的長期盈利趨勢。
去年，海南海奇交通集團在利息和稅收前有虧損，實際上將其收入縮減了 4.4%，達到了人民幣 724 億元。這不是我們希望看到的。
警告需要注意的事項
在過去的十二個月中，海南海祺交通集團產生了利息和稅前虧損（EBIT）的盈利。事實上，它在 EBIT 水平上損失了人民幣 74 萬元。當我們查看這一點並回顧其資產負債表上的負債時，相對於現金，對我們來說，公司有任何債務似乎是不明智的。坦率地說，我們認為資產負債表遠非匹配適合，儘管它可以隨著時間的推移而改善。另一個謹慎的原因是流血 CN¥255m 在過去十二個月的負自由現金流量。所以足以說，我們確實認為股票有風險。毫無疑問，我們從資產負債表中了解到最多關於債務的知識。然而，並非所有的投資風險都存在於資產負債表內-遠離它。為此，您應該意識到 2 警告標誌 我們已經發現了海南海旗交通集團。
畢竟，如果您對擁有堅如磐石的資產負債表的快速發展公司更感興趣，那麼請立即查看我們的淨現金增長股票清單。
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這篇文章由簡單牆聖是一般性質. 我們僅使用公正的方法，根據歷史數據和分析師預測提供評論，我們的文章並不打算作為財務建議。 它並不構成購買或出售任何股票的建議，也不會考慮您的目標或您的財務狀況。我們的目標是為您帶來由基本數據驅動的長期集中分析。請注意，我們的分析可能不會考慮最新的價格敏感公司公告或定性材料。簡易華街在提及的任何股票中都沒有倉位。
