David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' 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 Calavo Growers, Inc. (NASDAQ:CVGW) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
When Is Debt A Problem?
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. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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, debt can be an important tool in businesses, particularly capital heavy businesses. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
View our latest analysis for Calavo Growers
What Is Calavo Growers's Debt?
As you can see below, Calavo Growers had US$41.9m of debt, at April 2022, which is about the same as the year before. You can click the chart for greater detail. However, it does have US$2.32m in cash offsetting this, leading to net debt of about US$39.6m.
NasdaqGS:CVGW Debt to Equity History July 30th 2022
A Look At Calavo Growers' Liabilities
Zooming in on the latest balance sheet data, we can see that Calavo Growers had liabilities of US$140.2m due within 12 months and liabilities of US$104.3m due beyond that. On the other hand, it had cash of US$2.32m and US$113.1m worth of receivables due within a year. So it has liabilities totalling US$129.1m more than its cash and near-term receivables, combined.
Of course, Calavo Growers has a market capitalization of US$715.0m, 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. 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 Calavo Growers 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.
In the last year Calavo Growers wasn't profitable at an EBIT level, but managed to grow its revenue by 16%, to US$1.2b. That rate of growth is a bit slow for our taste, but it takes all types to make a world.
Caveat Emptor
Over the last twelve months Calavo Growers produced an earnings before interest and tax (EBIT) loss. Indeed, it lost US$4.3m at the EBIT level. Considering that alongside the liabilities mentioned above does not give us much confidence that company should be using so much debt. So we think its balance sheet is a little strained, though not beyond repair. We would feel better if it turned its trailing twelve month loss of US$30m into a profit. So we do think this stock is quite risky. 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. Be aware that Calavo Growers is showing 1 warning sign in our investment analysis , you should know about...
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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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.
大卫·伊本说得很好,波动性不是我们关心的风险,我们关心的是避免资本的永久性损失。当我们考虑一家公司的风险有多大时,我们总是喜欢看它对债务的使用,因为债务过重可能导致破产。我们注意到卡拉沃种植者公司纳斯达克(CDH Investments:CVGW)的资产负债表上确实有债务。但真正的问题是,这笔债务是否让该公司面临风险。
什么时候债务是个问题?
一般来说,只有当一家公司无法轻松偿还债务时,债务才会成为一个真正的问题,无论是通过筹集资金还是用自己的现金流。在最糟糕的情况下,如果一家公司无法偿还债权人的债务,它可能会破产。尽管这并不常见,但我们确实经常看到负债累累的公司永久性地稀释股东的权益,因为贷款人迫使他们以令人沮丧的价格筹集资金。当然,在企业中,债务可以是一个重要的工具,特别是资本密集型企业。当考虑一家企业使用了多少债务时,首先要做的是把现金和债务放在一起看。
查看我们对Calavo Growers的最新分析
Calavo Growers的债务是什么?
如下所示,截至2022年4月,Calavo Growers的债务为4190万美元,与前一年大致相同。您可以单击图表查看更多详细信息。然而,它确实有232万美元的现金来抵消这一点,导致净债务约为3960万美元。
NasdaqGS:CVGW债转股历史2022年7月30日
Calavo Growers的负债情况
放大最新的资产负债表数据,我们可以看到,Calavo Growers有1.402亿美元的负债在12个月内到期,超过12个月的负债有1.043亿美元。另一方面,它有232万美元的现金和价值1.131亿美元的应收账款在一年内到期。因此,它的负债总额比现金和近期应收账款加起来还要多1.291亿美元。
当然,Calavo Growers的市值为7.15亿美元,因此这些债务可能是可控的。话虽如此,很明显,我们应该继续监控它的资产负债表,以免它变得更糟。当你分析债务时,资产负债表显然是你关注的领域。但最终,该业务未来的盈利能力将决定Calavo Growers能否随着时间的推移加强其资产负债表。因此,如果你想看看专业人士的想法,你可能会发现这份关于分析师利润预测的免费报告很有趣。
去年,Calavo Growers在息税前利润水平上没有盈利,但其收入增长了16%,达到12亿美元。这种增长速度对我们的品味来说有点慢,但它需要所有类型的人来创造一个世界。
告诫买入者
在过去的12个月中,Calavo Growers产生了息税前收益(EBIT)亏损。事实上,它在息税前利润水平上亏损了430万美元。考虑到除了上面提到的债务,我们对公司应该使用如此多的债务没有太大的信心。因此,我们认为它的资产负债表有点紧张,但并不是无法修复。如果它把过去12个月3000万美元的亏损扭亏为盈,我们会感觉更好。因此,我们确实认为这只股票风险很大。当你分析债务时,资产负债表显然是你关注的领域。然而,并非所有投资风险都存在于资产负债表中--远非如此。请注意,卡拉沃种植者正在展示在我们的投资分析中出现1个警告信号,你应该知道关于……
如果你对一家增长迅速、资产负债表坚如磐石的公司更感兴趣,那么请立即查看我们的净现金成长型股票清单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。