Here's Why Worthington Enterprises (NYSE:WOR) Can Manage Its Debt Responsibly
Here's Why Worthington Enterprises (NYSE:WOR) Can Manage Its Debt Responsibly
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. Importantly, Worthington Enterprises, Inc. (NYSE:WOR) does carry debt. But the more important question is: how much risk is that debt creating?
有人說,作爲投資者,最好的風險思考方式是波動性,而不是債務,但禾倫·巴菲特曾經說過'波動性與風險遠非同義詞'。因此,當你考慮任何給定股票有多大風險時,需要考慮債務,因爲過多的債務可能會拖垮一家公司。值得注意的是,worthington enterprises(紐交所:WOR)確實有債務。但更重要的問題是:這筆債務製造了多少風險?
What Risk Does Debt Bring?
債務帶來了什麼風險?
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. 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. The first step when considering a company's debt levels is to consider its cash and debt together.
一般來說,債務只有在公司無法輕鬆償還時才成爲真正的問題,無論是通過融資還是自身的現金流。如果情況變得非常糟糕,貸款人可以接管企業。雖然這種情況並不常見,但我們經常看到,負債的公司因爲貸款人迫使其以賤價融資而永久稀釋股東。當然,債務的好處在於,它通常代表着廉價的資本,尤其是當它替代了公司能夠以高回報率再投資的稀釋時。在考慮一個公司的債務水平時,第一步是將其現金和債務放在一起考慮。
What Is Worthington Enterprises's Net Debt?
worthington enterprises的淨債務是多少?
As you can see below, Worthington Enterprises had US$300.0m of debt at August 2024, down from US$448.4m a year prior. On the flip side, it has US$178.5m in cash leading to net debt of about US$121.5m.
正如您下面所看到的,2024年8月,WOR有3億美元的債務,較前一年的4.484億美元減少。另一方面,它擁有1.785億美元現金,導致淨債務約爲1.215億美元。
How Strong Is Worthington Enterprises' Balance Sheet?
Worthington Enterprises的資產負債表有多強?
According to the last reported balance sheet, Worthington Enterprises had liabilities of US$166.2m due within 12 months, and liabilities of US$575.8m due beyond 12 months. Offsetting this, it had US$178.5m in cash and US$172.3m in receivables that were due within 12 months. So it has liabilities totalling US$391.2m more than its cash and near-term receivables, combined.
根據最近公佈的資產負債表,Worthington Enterprises的短期負債爲1.662億美元,12個月內到期,長期負債爲5.758億美元,超過12個月到期。抵消這些負債的是,它有1.785億美元現金和1.723億美元應收賬款,在12個月內到期。因此,它的負債總額比現金和短期應收賬款總額多了3.912億美元。
Of course, Worthington Enterprises has a market capitalization of US$2.09b, so these liabilities are probably manageable. Having said that, it's clear that we should continue to monitor its balance sheet, lest it change for the worse.
當然,Worthington Enterprises的市值爲20.9億美元,所以這些負債可能是可以管理的。話雖如此,顯然我們應該繼續監視其資產負債表,以防情況變得更糟。
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). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
爲了比較一個公司的債務與其收益的關係,我們計算其淨債務除以利息、稅、折舊和攤銷前的收益和利息前的收益(其利息覆蓋率)。因此,我們考慮了債務的絕對數量以及支付的利率。
Worthington Enterprises has net debt worth 1.8 times EBITDA, which isn't too much, but its interest cover looks a bit on the low side, with EBIT at only 2.9 times the interest expense. It seems that the business incurs large depreciation and amortisation charges, so maybe its debt load is heavier than it would first appear, since EBITDA is arguably a generous measure of earnings. We also note that Worthington Enterprises improved its EBIT from a last year's loss to a positive US$2.9m. 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 Worthington Enterprises'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.
Worthington Enterprises的淨負債價值是EBITDA的1.8倍,並不算太多,但其利息保障看起來有點偏低,EBIt僅爲利息費用的2.9倍。看起來業務產生大量折舊和攤銷費用,所以也許其債務負擔比最初看起來要重,因爲EBITDA可以說是盈利的一種慷慨度量。我們還注意到Worthington Enterprises將EBIt從去年的虧損提高到盈利290萬美元。資產負債表顯然是你分析債務時需要關注的領域。但最重要的是未來的收入,最終將決定Worthington Enterprises是否能夠保持健康的資產負債表。因此,如果您想知道專業人士的看法,您可能會發現分析師利潤預測的免費報告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So it is important to check how much of its earnings before interest and tax (EBIT) converts to actual free cash flow. Over the last year, Worthington Enterprises actually produced more free cash flow than EBIT. There's nothing better than incoming cash when it comes to staying in your lenders' good graces.
但我們最終的考慮也很重要,因爲公司無法用紙面利潤支付債務;它需要現金。因此,重要的是查看其利息稅前盈利(EBIT)有多少轉化爲實際的自由現金流。在過去一年裏,Worthington Enterprises實際上產生的自由現金流比EBIt多。在維持與貸款人友好關係時,沒有比現金流更好的事情了。
Our View
我們的觀點
The good news is that Worthington Enterprises's demonstrated ability to convert EBIT to free cash flow delights us like a fluffy puppy does a toddler. But we must concede we find its interest cover has the opposite effect. Looking at all the aforementioned factors together, it strikes us that Worthington Enterprises can handle its debt fairly comfortably. Of course, while this leverage can enhance returns on equity, it does bring more risk, so it's worth keeping an eye on this one. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. We've identified 3 warning signs with Worthington Enterprises , and understanding them should be part of your investment process.
好消息是,worthington enterprises顯示出將EBIt轉化爲自由現金流的能力,像一隻蓬鬆小狗讓嬰兒開心一樣讓我們高興。但我們必須承認,它的利息償付能力產生了相反的效果。綜合考慮所有前述因素,我們認爲worthington enterprises能夠相當舒適地處理其債務。當然,雖然這種槓桿可以提高股本回報率,但也帶來了更多的風險,因此值得密切關注。在分析債務水平時,資產負債表是顯而易見的起點。然而,並非所有投資風險都存在於資產負債表中 - 遠非如此。我們已經確定了worthington enterprises的3個警示信號,並了解它們應該成爲您的投資流程的一部分。
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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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
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