The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that Shenzhen Silver Basis Technology Co., Ltd. (SZSE:002786) 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?
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. 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 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 Shenzhen Silver Basis Technology
What Is Shenzhen Silver Basis Technology's Net Debt?
As you can see below, Shenzhen Silver Basis Technology had CN¥1.49b of debt, at September 2022, which is about the same as the year before. You can click the chart for greater detail. On the flip side, it has CN¥248.1m in cash leading to net debt of about CN¥1.24b.
SZSE:002786 Debt to Equity History December 15th 2022
A Look At Shenzhen Silver Basis Technology's Liabilities
We can see from the most recent balance sheet that Shenzhen Silver Basis Technology had liabilities of CN¥3.20b falling due within a year, and liabilities of CN¥565.4m due beyond that. Offsetting this, it had CN¥248.1m in cash and CN¥784.9m in receivables that were due within 12 months. So it has liabilities totalling CN¥2.74b more than its cash and near-term receivables, combined.
Shenzhen Silver Basis Technology has a market capitalization of CN¥4.58b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk. There's no doubt that we learn most about debt from the balance sheet. But you can't view debt in total isolation; since Shenzhen Silver Basis Technology will need earnings to service that debt. 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 Shenzhen Silver Basis Technology wasn't profitable at an EBIT level, but managed to grow its revenue by 13%, to CN¥2.8b. That rate of growth is a bit slow for our taste, but it takes all types to make a world.
Caveat Emptor
Importantly, Shenzhen Silver Basis Technology had an earnings before interest and tax (EBIT) loss over the last year. Indeed, it lost CN¥206m 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. Another cause for caution is that is bled CN¥214m in negative free cash flow over the last twelve months. So suffice it to say we do consider the stock to be 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. For instance, we've identified 2 warning signs for Shenzhen Silver Basis Technology (1 is a bit unpleasant) you should be aware of.
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
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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.
由伯克希爾哈撒韋的Li·芒格支持的外部基金經理Lu直言不諱地説,最大的投資風險不是價格的波動,而是你是否會遭受永久性的資本損失。當你考察一家公司的風險有多大時,考慮它的資產負債表是很自然的,因為當一家企業倒閉時,債務往往會涉及到它。我們注意到深圳市銀基科技有限公司。(SZSE:002786)的資產負債表上確實有債務。但真正的問題是,這筆債務是否讓該公司面臨風險。
什麼時候債務是個問題?
債務是幫助企業發展的一種工具,但如果一家企業無法償還貸款人的債務,那麼它就只能聽從貸款人的擺佈。如果情況真的變得很糟糕,貸款人可以控制業務。儘管這並不常見,但我們確實經常看到負債累累的公司永久性地稀釋股東的權益,因為貸款人迫使他們以令人沮喪的價格籌集資金。當然,債務的好處是,它往往代表着廉價資本,特別是當它用能夠以高回報率進行再投資的能力取代公司的稀釋時。當考慮一家企業使用了多少債務時,首先要做的是把現金和債務放在一起看。
查看我們對深圳銀基科技的最新分析
深圳銀基科技的淨負債是多少?
如下所示,截至2022年9月,深圳銀基科技負債14.9億元,與前一年持平。您可以單擊圖表查看更多詳細信息。另一方面,它擁有2.481億加元的現金,導致淨債務約為12.4億加元。
深交所:002786債轉股歷史2022年12月15日
深圳銀基科技負債情況一瞥
從最近的資產負債表可以看到,深圳銀基科技有32億元人民幣的負債在一年內到期,還有5.654億元人民幣的負債在一年內到期。作為抵消,它有2.481億加元的現金和7.849億加元的應收賬款在12個月內到期。因此,該公司的負債總額為人民幣27.4億元,比現金和近期應收賬款加起來還要多。
深圳銀基科技的市值為人民幣45.8億元,因此,如果有需要,它很可能會籌集現金來改善其資產負債表。但我們肯定希望密切關注其債務帶來太大風險的跡象。毫無疑問,我們從資產負債表中瞭解到的債務最多。但你不能完全孤立地看待債務,因為深圳銀基科技需要盈利來償還債務。因此,如果你熱衷於瞭解更多關於它的收益,可能值得查看一下它的長期收益趨勢圖。
去年,深圳銀基科技沒有實現息税前利潤,但收入增長了13%,達到人民幣28億元。這種增長速度對我們的品味來説有點慢,但它需要所有類型的人來創造一個世界。
告誡買入者
重要的是,深圳銀基科技去年出現息税前利潤(EBIT)虧損。事實上,它在息税前利潤水平上虧損了2.06億元人民幣。考慮到除了上面提到的債務,我們對公司應該使用如此多的債務沒有太大的信心。因此,我們認為它的資產負債表有點緊張,但並不是無法修復。另一個值得警惕的原因是,在過去的12個月裏,自由現金流為負2.14億元。因此,可以説,我們確實認為這隻股票是有風險的。當你分析債務時,資產負債表顯然是你關注的領域。然而,並非所有投資風險都存在於資產負債表中--遠非如此。例如,我們已經確定深圳銀基科技的2個警示標誌(1有點令人不快)你應該知道。
如果你有興趣投資於可以在沒有債務負擔的情況下增長利潤的企業,那麼看看這個免費資產負債表上有淨現金的成長型企業名單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。