Warren Buffett famously said, 'Volatility is far from synonymous with risk.' 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 Jin Tong Ling Technology Group Co., Ltd. (SZSE:300091) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
When Is Debt Dangerous?
Debt assists a business until the business has trouble paying it off, either with new capital or with free 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, plenty of companies use debt to fund growth, without any negative consequences. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
Check out our latest analysis for Jin Tong Ling Technology Group
What Is Jin Tong Ling Technology Group's Net Debt?
As you can see below, at the end of June 2022, Jin Tong Ling Technology Group had CN¥1.58b of debt, up from CN¥1.00b a year ago. Click the image for more detail. However, it does have CN¥644.7m in cash offsetting this, leading to net debt of about CN¥933.9m.
SZSE:300091 Debt to Equity History August 25th 2022
How Healthy Is Jin Tong Ling Technology Group's Balance Sheet?
We can see from the most recent balance sheet that Jin Tong Ling Technology Group had liabilities of CN¥3.38b falling due within a year, and liabilities of CN¥295.6m due beyond that. Offsetting these obligations, it had cash of CN¥644.7m as well as receivables valued at CN¥3.34b due within 12 months. So it actually has CN¥310.7m more liquid assets than total liabilities.
This surplus suggests that Jin Tong Ling Technology Group has a conservative balance sheet, and could probably eliminate its debt without much difficulty. There's no doubt that we learn most about debt from the balance sheet. But it is Jin Tong Ling Technology Group's earnings that will influence how the balance sheet holds up in the future. 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 Jin Tong Ling Technology Group had a loss before interest and tax, and actually shrunk its revenue by 7.7%, to CN¥1.6b. We would much prefer see growth.
Caveat Emptor
Over the last twelve months Jin Tong Ling Technology Group produced an earnings before interest and tax (EBIT) loss. Indeed, it lost CN¥24m at the EBIT level. On a more positive note, the company does have liquid assets, so it has a bit of time to improve its operations before the debt becomes an acute problem. But we'd want to see some positive free cashflow before spending much time on trying to understand the stock. This one is a bit too risky for our liking. 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. We've identified 1 warning sign with Jin Tong Ling Technology Group , and understanding them should be part of your investment process.
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.
巴菲特(Warren Buffett)曾说过一句名言：波动性远非风险的代名词。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。我们注意到金童玲科技集团有限公司。(SZSE：300091)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。
债务在什么时候是危险的？
债务帮助企业，直到企业难以偿还债务，无论是用新资本还是用自由现金流。最终，如果公司不能履行其偿还债务的法定义务，股东可能会一无所有地离开。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，许多公司利用债务为增长提供资金，没有任何负面后果。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。
查看我们对金童玲科技集团的最新分析
金童玲科技集团的净负债是多少？
如下所示，截至2022年6月底，金童玲科技集团的债务为15.8亿元人民币，高于一年前的10.0亿元人民币。单击图像了解更多详细信息。然而，它确实有6.447亿加元的现金抵消了这一点，导致净债务约为9.339亿加元。
深圳证交所：300091债转股历史2022年8月25日
金童玲科技集团的资产负债表有多健康？
从最近的资产负债表可以看出，金童玲科技集团有33.8亿元的负债在一年内到期，还有2.956亿元的负债在一年内到期。为了抵消这些债务，该公司有6.447亿加元的现金以及价值33.4亿加元的应收账款在12个月内到期。所以它实际上有3.107亿元人民币更多流动资产超过总负债。
这一盈余表明，金童玲科技集团拥有保守的资产负债表，很可能不会有太大困难地消除债务。毫无疑问，我们从资产负债表中了解到的债务最多。但影响未来资产负债表表现的，将是金童玲科技集团的盈利情况。因此，如果你热衷于了解更多关于它的收益，可能值得查看一下它的长期收益趋势图。
去年，金童玲科技集团息税前亏损，实际营收缩水7.7%，至16亿加元。我们更希望看到增长。
告诫买入者
在过去的12个月里，金童玲科技集团出现了息税前收益(EBIT)亏损。事实上，它在息税前利润水平上亏损了2400万元人民币。从更积极的方面来看，该公司确实拥有流动资产，因此在债务问题变得尖锐之前，它有一点时间来改善运营。但在花费大量时间试图了解这只股票之前，我们希望看到一些正的自由现金流。这个有点太冒险了，我们不喜欢。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。我们已经确定了1个警告信号与金童玲科技集团合作，了解他们应该是你投资过程的一部分。
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。
