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Investors Can Find Comfort In Edwards Lifesciences' (NYSE:EW) Earnings Quality

Investors Can Find Comfort In Edwards Lifesciences' (NYSE:EW) Earnings Quality

投資者可以從愛德華茲生命科學(紐約證券交易所代碼:EW)的收益質量中找到安慰
Simply Wall St ·  05/06 18:17

Shareholders appeared unconcerned with Edwards Lifesciences Corporation's (NYSE:EW) lackluster earnings report last week. Our analysis suggests that while the profits are soft, the foundations of the business are strong.

股東們似乎對愛德華茲生命科學公司(紐約證券交易所代碼:EW)上週乏善可陳的收益報告漠不關心。我們的分析表明,儘管利潤疲軟,但業務基礎卻很牢固。

earnings-and-revenue-history
NYSE:EW Earnings and Revenue History May 6th 2024
紐約證券交易所:EW 收益和收入歷史記錄 2024 年 5 月 6 日

Examining Cashflow Against Edwards Lifesciences' Earnings

將現金流與愛德華茲生命科學的收入對比研究

In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.

在高金融領域,用於衡量公司將申報的利潤轉化爲自由現金流(FCF)的效果的關鍵比率是應計比率(來自現金流)。簡而言之,該比率從淨利潤中減去FCF,然後將該數字除以公司在此期間的平均運營資產。你可以將現金流的應計比率視爲 “非FCF利潤率”。

Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.

因此,當公司的應計比率爲負時,這實際上被認爲是一件好事,但是如果應計比率爲正,則被認爲是一件壞事。這並不意味着我們應該擔心應計比率爲正,但值得注意的是,應計比率相當高的地方。值得注意的是,有一些學術證據表明,總的來說,高應計比率對短期利潤來說是個壞兆頭。

Over the twelve months to March 2024, Edwards Lifesciences recorded an accrual ratio of 0.20. Unfortunately, that means its free cash flow fell significantly short of its reported profits. To wit, it produced free cash flow of US$251m during the period, falling well short of its reported profit of US$1.41b. Edwards Lifesciences' free cash flow actually declined over the last year, but it may bounce back next year, since free cash flow is often more volatile than accounting profits. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part.

在截至2024年3月的十二個月中,愛德華茲生命科學記錄的應計比率爲0.20。不幸的是,這意味着其自由現金流遠低於其報告的利潤。換句話說,它在此期間產生了2.51億美元的自由現金流,遠低於其報告的14.1億美元利潤。Edwards Lifesciences的自由現金流實際上在去年有所下降,但明年可能會反彈,因爲自由現金流通常比會計利潤更具波動性。話雖如此,故事還有更多。應計比率至少部分反映了不尋常項目對法定利潤的影響。

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

這可能會讓你想知道分析師對未來盈利能力的預測。幸運的是,您可以單擊此處查看根據他們的估計描繪未來盈利能力的交互式圖表。

The Impact Of Unusual Items On Profit

不尋常物品對利潤的影響

Edwards Lifesciences' profit suffered from unusual items, which reduced profit by US$245m in the last twelve months. In the case where this was a non-cash charge it would have made it easier to have high cash conversion, so it's surprising that the accrual ratio tells a different story. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect Edwards Lifesciences to produce a higher profit next year, all else being equal.

愛德華茲生命科學的利潤來自不尋常的項目,在過去的十二個月中,利潤減少了2.45億美元。如果這是一筆非現金費用,則可以更輕鬆地實現高現金轉換,因此令人驚訝的是,應計比率講述了一個不同的故事。看到不尋常的項目使公司利潤付出代價從來都不是一件好事,但從好的方面來看,情況可能遲早會好轉。當我們分析全球絕大多數上市公司時,我們發現重大不尋常的事項往往不會重演。鑑於這些單列項目被認爲不尋常,這並不奇怪。假設這些不尋常的支出不會再次出現,因此,在其他條件相同的情況下,我們預計愛德華茲生命科學明年將實現更高的利潤。

Our Take On Edwards Lifesciences' Profit Performance

我們對愛德華茲生命科學利潤表現的看法

Edwards Lifesciences saw unusual items weigh on its profit, which should have made it easier to show high cash conversion, which it did not do, according to its accrual ratio. Given the contrasting considerations, we don't have a strong view as to whether Edwards Lifesciences's profits are an apt reflection of its underlying potential for profit. If you want to do dive deeper into Edwards Lifesciences, you'd also look into what risks it is currently facing. For example - Edwards Lifesciences has 1 warning sign we think you should be aware of.

Edwards Lifesciences看到不尋常的項目壓制了其利潤,這本來可以更容易地顯示出高現金轉化率,但根據其應計比率,它沒有這樣做。鑑於截然不同的考慮,我們對愛德華茲生命科學的利潤是否恰當地反映了其潛在的盈利潛力沒有強烈的看法。如果你想更深入地研究愛德華茲生命科學,你還需要研究它目前面臨的風險。例如,愛德華茲生命科學有 1 個警告信號,我們認爲你應該注意。

In this article we've looked at a number of factors that can impair the utility of profit numbers, as a guide to a business. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying to be useful.

在本文中,我們研究了許多可能損害利潤數字效用的因素,以此作爲企業的指南。但是,還有很多其他方法可以讓你對公司的看法。例如,許多人認爲高股本回報率是有利的商業經濟的標誌,而另一些人則喜歡 “關注資金”,尋找內部人士正在買入的股票。雖然可能需要你進行一些研究,但你可能會發現這份免費收集的擁有高股本回報率的公司,或者這份內部人士正在購買的股票清單很有用。

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.

對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本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型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。

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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