Here's Why Lindsay (NYSE:LNN) Can Manage Its Debt Responsibly
Here's Why Lindsay (NYSE:LNN) Can Manage Its Debt Responsibly
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. As with many other companies Lindsay Corporation (NYSE:LNN) makes use of debt. But is this debt a concern to shareholders?
霍華德·馬克斯很恰當地說,比起擔心股票價格的波動,「永久性損失的可能性是我擔心的風險……每個我認識的實際投資者也都在擔心。」因此,聰明的錢知道,債務 - 通常涉及破產的 - 在評估一家公司有多風險時,是一個非常重要的因素。像許多其他公司一樣,Lindsay Corporation(紐交所:LNN)也利用債務。但這種債務對股東來說是個問題嗎?
When Is Debt Dangerous?
債務何時會變得危險?
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. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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. When we examine debt levels, we first consider both cash and debt levels, together.
一般來說,當一家公司無法輕鬆還清債務時,債務才會真正成爲問題,無論是通過融資還是通過自身的現金流。最終,如果公司無法履行償還債務的法律義務,股東可能會一無所有。雖然這種情況並不常見,但我們確實常常看到負債公司因債權人的強迫而在低價中進行融資,從而永久性稀釋股東的股份。當然,債務的好處在於它通常代表着便宜的資本,尤其是當它取代了能夠以高收益率再投資的公司的稀釋股份時。當我們審查債務水平時,首先考慮的是現金和債務水平的總體情況。
How Much Debt Does Lindsay Carry?
Lindsay 公司承擔了多少債務?
As you can see below, Lindsay had US$115.2m of debt, at August 2024, which is about the same as the year before. You can click the chart for greater detail. But on the other hand it also has US$190.9m in cash, leading to a US$75.7m net cash position.
正如下方所示,截止2024年8月,Lindsay 的債務爲11520萬美元,和前一年差不多。您可以點擊圖表查看更詳細的信息。但另一方面,它還有19090萬美元的現金,導致7570萬美元的淨現金頭寸。
How Healthy Is Lindsay's Balance Sheet?
Lindsay的資產負債表健康狀況如何?
The latest balance sheet data shows that Lindsay had liabilities of US$125.8m due within a year, and liabilities of US$153.5m falling due after that. Offsetting this, it had US$190.9m in cash and US$119.9m in receivables that were due within 12 months. So it actually has US$31.4m more liquid assets than total liabilities.
最新的資產負債表數據顯示,Lindsay有負債12580萬美元在一年內到期,以及負債15350萬美元在其後到期。此抵消的是,它有19090萬美元的現金和11990萬美元在12個月內到期的應收賬款。因此,它的流動資產實際上比總負債多3140萬美元。
This surplus suggests that Lindsay has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Simply put, the fact that Lindsay has more cash than debt is arguably a good indication that it can manage its debt safely.
這一盈餘表明,Lindsay有一個保守的資產負債表,並且可能能夠輕鬆地消除其債務。簡單來說,Lindsay的現金多於債務,這無疑是一個好跡象,表明它能夠安全地管理其債務。
The modesty of its debt load may become crucial for Lindsay if management cannot prevent a repeat of the 25% cut to EBIT over the last year. When a company sees its earnings tank, it can sometimes find its relationships with its lenders turn sour. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Lindsay 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.
如果管理層無法防止過去一年EBIT削減25%的情況再次發生,那麼它的債務負擔的適度可能對Lindsay至關重要。當一家公司看到其收益急劇下降時,有時會發現其與貸款人的關係變得緊張。當你在分析債務時,資產負債表顯然是重點關注的領域。但最終,業務的未來盈利能力將決定Lindsay是否能夠隨着時間的推移加強其資產負債表。因此,如果你想了解專業人士的看法,你可能會覺得這份關於分析師利潤預測的免費報告很有趣。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. While Lindsay has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. Over the most recent three years, Lindsay recorded free cash flow worth 57% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This cold hard cash means it can reduce its debt when it wants to.
最後,一家公司只能用冷硬現金償還債務,而不是會計利潤。雖然Lindsay的資產負債表上有淨現金,但了解它將息稅前利潤(EBIT)轉化爲自由現金流的能力仍然值得關注,以幫助我們理解它是如何快速積累(或減少)那筆現金餘額的。在最近三年中,Lindsay記錄的自由現金流佔其EBIT的57%,考慮到自由現金流不包括利息和稅,這大約是正常的。這筆冷硬現金意味着它可以在需要時減少其債務。
Summing Up
總結
While it is always sensible to investigate a company's debt, in this case Lindsay has US$75.7m in net cash and a decent-looking balance sheet. So we don't have any problem with Lindsay's use of debt. 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. Case in point: We've spotted 1 warning sign for Lindsay you should be aware of.
儘管調查公司的債務始終是明智的,但在這種情況下,Lindsay擁有7570萬美元的淨現金和一份看起來不錯的資產負債表。所以我們不擔心Lindsay的債務使用。分析債務水平時,資產負債表是顯而易見的起點。然而,並非所有的投資風險都在資產負債表上——遠遠不止於此。舉個例子:我們發現了1個Lindsay你應該注意的警告信號。
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.
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.
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這篇來自Simply Wall ST的文章是一般性的。我們根據歷史數據和分析師預測提供評論,採用無偏見的方法,我們的文章並不旨在提供財務建議。它不構成對任何股票的買入或賣出建議,也未考慮到您的目標或財務狀況。我們旨在爲您提供以基本數據驅動的長期分析。請注意,我們的分析可能未考慮最新的價格敏感公司公告或定性材料。Simply Wall ST在提到的任何股票中均沒有持倉。
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