Total Liabilities – Antochi http://antochi.ro/ Tue, 21 Jun 2022 08:46:44 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://antochi.ro/wp-content/uploads/2021/07/icon-1-150x150.png Total Liabilities – Antochi http://antochi.ro/ 32 32 Horizonte Minerals (LON:HZM) has debt but no profit; Should you be worried? https://antochi.ro/horizonte-minerals-lonhzm-has-debt-but-no-profit-should-you-be-worried/ Tue, 21 Jun 2022 08:13:11 +0000 https://antochi.ro/horizonte-minerals-lonhzm-has-debt-but-no-profit-should-you-be-worried/ Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness […]]]>

Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. Like many other companies Horizonte Minerals Plc (LON:HZM) uses debt. But the more important question is: what risk does this debt create?

When is debt a problem?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, it exists at their mercy. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are mercilessly liquidated by their bankers. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. Of course, debt can be an important tool in businesses, especially capital-intensive businesses. The first thing to do when considering how much debt a business has is to look at its cash flow and debt together.

See our latest analysis for Horizonte Minerals

What is Horizonte Minerals debt?

The image below, which you can click on for more details, shows that in March 2022, Horizonte Minerals had a debt of $136.1 million, compared to $32.1 million in one year. However, his balance sheet shows that he holds $251.8 million in cash, so he actually has $115.7 million in net cash.

AIM: HZM Debt to Equity History June 21, 2022

How strong is Horizonte Minerals’ balance sheet?

According to the last published balance sheet, Horizonte Minerals had liabilities of US$15.3 million due within 12 months and liabilities of US$148.6 million due beyond 12 months. In compensation for these obligations, it had cash of US$251.8 million as well as receivables valued at US$18.3 million and maturing within 12 months. So he actually has US$106.1 million After liquid assets than total liabilities.

This excess liquidity is an excellent indication that Horizonte Minerals’ balance sheet is almost as strong as Fort Knox’s. With that in mind, one could argue that its track record means the company is capable of dealing with some adversity. In short, Horizonte Minerals has a net cash position, so it’s fair to say that they don’t have a lot of debt! When analyzing debt levels, the balance sheet is the obvious starting point. But ultimately, the company’s future profitability will decide whether Horizonte Minerals can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Given its lack of significant operating revenue, investors are likely hoping Horizonte Minerals finds valuable resources before it runs out of money.

So how risky is Horizonte Minerals?

Statistically speaking, businesses that lose money are riskier than those that make money. And we note that Horizonte Minerals recorded a loss in earnings before interest and taxes (EBIT) over the past year. Indeed, during this period, it burned through $63 million in cash and suffered a loss of $6.8 million. But at least it has $115.7 million on the balance sheet to spend on near-term growth. Even if its balance sheet seems sufficiently liquid, debt always makes us a little nervous if a company does not produce free cash flow regularly. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks reside on the balance sheet, far from it. Know that Horizonte Minerals shows 4 warning signs in our investment analysis and 2 of them are potentially serious…

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Socket Mobile (NASDAQ:SCKT) has a rock-solid balance sheet https://antochi.ro/socket-mobile-nasdaqsckt-has-a-rock-solid-balance-sheet/ Sun, 19 Jun 2022 14:42:48 +0000 https://antochi.ro/socket-mobile-nasdaqsckt-has-a-rock-solid-balance-sheet/ Warren Buffett said: “Volatility is far from synonymous with risk. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. We note that Socket Mobile, Inc. (NASDAQ:SCKT) has debt on its balance sheet. But does this debt worry shareholders? When is debt […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. We note that Socket Mobile, Inc. (NASDAQ:SCKT) has debt on its balance sheet. But does this debt worry shareholders?

When is debt dangerous?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, it exists at their mercy. If things go really bad, lenders can take over the business. However, a more frequent (but still costly) event is when a company has to issue shares at bargain prices, permanently diluting shareholders, just to shore up its balance sheet. That said, the most common situation is when a company manages its debt reasonably well – and to its own benefit. The first thing to do when considering how much debt a business has is to look at its cash and debt together.

See our latest analysis for Socket Mobile

What is Socket Mobile’s debt?

The image below, which you can click for more details, shows Socket Mobile had $1.85 million in debt at the end of March 2022, a reduction from $2.32 million year-over-year. However, his balance sheet shows that he holds $5.42 million in cash, so he actually has $3.57 million in net cash.

debt-equity-history-analysis

How strong is Socket Mobile’s balance sheet?

We can see from the most recent balance sheet that Socket Mobile had liabilities of US$5.34 million due in one year, and liabilities of US$20.7,000 due beyond. In return, he had $5.42 million in cash and $3.45 million in receivables due within 12 months. He can therefore boast of having $3.51 million in cash more than total Passives.

This excess liquidity suggests that Socket Mobile is taking a cautious approach to debt. Given that he has easily sufficient short-term cash, we don’t think he will have any problems with his lenders. Simply put, the fact that Socket Mobile has more cash than debt is arguably a good indication that it can safely manage its debt.

Even more impressive is the fact that Socket Mobile increased its EBIT by 613% year-over-year. This boost will make it even easier to pay off debt in the future. When analyzing debt levels, the balance sheet is the obvious starting point. But you can’t look at debt in total isolation; since Socket Mobile will need revenue to repay this debt. So, when considering debt, it is definitely worth looking at the earnings trend. Click here for an interactive preview.

But our last consideration is also important, because a company cannot pay debt with paper profits; he needs cash. Although Socket Mobile has net cash on its balance sheet, it’s still worth looking at its ability to convert earnings before interest and taxes (EBIT) to free cash flow, to help us understand how fast it’s building ( or erodes) that money. balance. Over the past three years, Socket Mobile has had free cash flow of 50% of its EBIT, which is about normal given that free cash flow excludes interest and taxes. This cold hard cash allows him to reduce his debt whenever he wants.

Summary

While we sympathize with investors who find debt a concern, you should keep in mind that Socket Mobile has a net cash position of US$3.57 million, as well as more liquid assets than liabilities. And it has impressed us with its 613% EBIT growth over the past year. So is Socket Mobile’s debt a risk? This does not seem to us to be the case. There is no doubt that we learn the most about debt from the balance sheet. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example, we have identified 4 warning signs for Socket Mobile (2 doesn’t sit too well with us) you should know.

In the end, sometimes it’s easier to focus on companies that don’t even need to take on debt. Readers can access a list of growth stocks with no net debt 100% freeat present.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Ch. 11 Quick Reference: Revlon Inc. https://antochi.ro/ch-11-quick-reference-revlon-inc/ Fri, 17 Jun 2022 22:06:00 +0000 https://antochi.ro/ch-11-quick-reference-revlon-inc/ By Vince Sullivan (June 17, 2022, 6:06 p.m. EDT) — Cosmetics maker Revlon Inc. reached Chapter 11 with 50 affiliates on Wednesday, saying supply chain issues have prevented it from meeting demand from consumers. customers and significantly limited its liquidity. (AP Photo/Elise Amendola, File) The company plans to engage with creditors in its complex capital […]]]>
By Vince Sullivan (June 17, 2022, 6:06 p.m. EDT) — Cosmetics maker Revlon Inc. reached Chapter 11 with 50 affiliates on Wednesday, saying supply chain issues have prevented it from meeting demand from consumers. customers and significantly limited its liquidity.

(AP Photo/Elise Amendola, File)

The company plans to engage with creditors in its complex capital structure to reach a restructuring support agreement by November and to obtain confirmation of a Chapter 11 reorganization plan by April 2023.

Reasons for Filing for Chapter 11 Protection

Supply chain issues prevent it from meeting less than 80% of customer demand Tight liquidity under an asset-based lending facility the company needs…

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Is Tsingtao Brewery (HKG:168) using too much debt? https://antochi.ro/is-tsingtao-brewery-hkg168-using-too-much-debt/ Thu, 16 Jun 2022 07:03:37 +0000 https://antochi.ro/is-tsingtao-brewery-hkg168-using-too-much-debt/ Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. […]]]>

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. Above all, Tsingtao Brewery Company Limited (HKG:168) is in debt. But the real question is whether this debt makes the business risky.

What risk does debt carry?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are mercilessly liquidated by their bankers. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, debt can be an important tool in businesses, especially capital-intensive businesses. When we look at debt levels, we first consider cash and debt levels, together.

See our latest analysis for Tsingtao Brewery

What is Tsingtao Brewery’s debt?

The image below, which you can click on for more details, shows that in March 2022, Tsingtao Brewery had a debt of 743.8 million Canadian yen, compared to 698.2 million Canadian yen in one year . But on the other hand, it also has 19.8 billion Canadian yen in cash, resulting in a net cash position of 19.0 billion domestic yen.

SEHK: 168 Debt to Equity History June 16, 2022

How strong is Tsingtao Brewery’s balance sheet?

According to the latest published balance sheet, Tsingtao Brewery had liabilities of 17.6 billion Canadian yen due within 12 months and liabilities of 4.41 billion domestic yen due beyond 12 months. On the other hand, it had a cash position of 19.8 billion Canadian yen and 830.4 million national yen of receivables due within one year. Thus, its liabilities outweigh the sum of its cash and (short-term) receivables of 1.40 billion Canadian yen.

Given the size of Tsingtao Brewery, it appears its cash is well balanced against its total liabilities. So while it’s hard to imagine the 103.5 billion yen company struggling to find cash, we still think it’s worth keeping an eye on its balance sheet. While it has liabilities to note, Tsingtao Brewery also has more cash than debt, so we’re pretty confident it can safely manage its debt.

While Tsingtao Brewery doesn’t appear to have gained much on the EBIT line, at least earnings are holding steady for now. The balance sheet is clearly the area to focus on when analyzing debt. But it is future earnings, more than anything, that will determine Tsingtao Brewery’s ability to maintain a healthy balance sheet in the future. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

Finally, a company can only repay its debts with cold hard cash, not with book profits. Although Tsingtao Brewery has net cash on its balance sheet, it’s still worth looking at its ability to convert earnings before interest and taxes (EBIT) to free cash flow, to help us understand how quickly it’s building (or erodes) that treasury. balance. Over the past three years, Tsingtao Brewery has actually produced more free cash flow than EBIT. This kind of strong cash generation warms our hearts like a puppy in a bumblebee suit.

Summary

While it’s always a good idea to look at a company’s total liabilities, it’s very reassuring to know that Tsingtao Brewery has 19.0 billion yen of net cash. And it impressed us with a free cash flow of 2.8 billion Canadian yen, or 142% of its EBIT. We therefore do not believe that Tsingtao Brewery’s use of debt is risky. The balance sheet is clearly the area to focus on when analyzing debt. However, not all investment risks reside on the balance sheet, far from it. For example, we have identified 1 warning sign for Tsingtao Brewery of which you should be aware.

If you are interested in investing in businesses that can generate profits without the burden of debt, then check out this free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Is Proact IT Group (STO:PACT) a risky investment? https://antochi.ro/is-proact-it-group-stopact-a-risky-investment/ Tue, 14 Jun 2022 08:27:37 +0000 https://antochi.ro/is-proact-it-group-stopact-a-risky-investment/ Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. So it may be obvious that you need to take debt into account when thinking about the risk of […]]]>

Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can sink a business. Like many other companies Proact IT Group AB (publisher) (STO:PACT) uses debt. But does this debt worry shareholders?

What risk does debt carry?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still costly) situation is when a company has to dilute shareholders at a cheap share price just to keep debt under control. By replacing dilution, however, debt can be a great tool for companies that need capital to invest in growth at high rates of return. The first step when considering a company’s debt levels is to consider its cash and debt together.

Discover our latest analysis for Proact IT Group

What is Proact IT Group’s net debt?

As you can see below, at the end of March 2022, Proact IT Group had a debt of 464.7 million kr, compared to 266.4 million kr a year ago. Click on the image for more details. However, as he has a cash reserve of 418.3 million kr, his net debt is lower at around 46.4 million kr.

OM:PACT Debt to Equity History June 14, 2022

How healthy is Proact IT Group’s balance sheet?

The latest balance sheet data shows that Proact IT Group had liabilities of kr 1.61 billion falling due within one year, and liabilities of kr 1.14 billion falling due thereafter. In return, he had 418.3 million kr in cash and 1.27 billion kr in debt due within 12 months. Thus, its liabilities total kr 1.06 billion more than the combination of its cash and short-term receivables.

Proact IT Group has a market capitalization of kr 1.81 billion, so it could very likely raise funds to improve its balance sheet, should the need arise. But we definitely want to keep our eyes peeled for indications that its debt is too risky.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

Proact IT Group’s net debt is only 0.18 times its EBITDA. And its EBIT covers its interest charges 16.8 times. So we’re pretty relaxed about his super-conservative use of debt. But the flip side is that Proact IT Group has seen its EBIT drop 2.3% over the past year. This type of decline, if it continues, will obviously make the debt more difficult to manage. The balance sheet is clearly the area to focus on when analyzing debt. But it is future earnings, more than anything, that will determine Proact IT Group’s ability to maintain a healthy balance sheet in the future. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

But our last consideration is also important, because a company cannot pay off its debts with paper profits; he needs cash. It is therefore worth checking how much of this EBIT is supported by free cash flow. Over the past three years, Proact IT Group has actually produced more free cash flow than EBIT. This kind of strong cash generation warms our hearts like a puppy in a bumblebee suit.

Our point of view

Interest coverage from Proact IT Group suggests he can manage his debt as easily as Cristiano Ronaldo could score a goal against an Under-14 goalkeeper. But truth be told, we think his total passive level undermines that impression a bit. Looking at all of the aforementioned factors together, it seems to us that Proact IT Group can manage its debt quite comfortably. On the plus side, this leverage can increase shareholder returns, but the potential downside is greater risk of loss, so it’s worth keeping an eye on the balance sheet. When analyzing debt levels, the balance sheet is the obvious starting point. But at the end of the day, every business can contain risks that exist outside of the balance sheet. To this end, you should be aware of the 1 warning sign we spotted with Proact IT Group.

If, after all that, you’re more interested in a fast-growing company with a strong balance sheet, check out our list of cash-neutral growth stocks right away.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Is Maire Tecnimont (BIT:MT) using too much debt? https://antochi.ro/is-maire-tecnimont-bitmt-using-too-much-debt/ Sun, 12 Jun 2022 08:20:59 +0000 https://antochi.ro/is-maire-tecnimont-bitmt-using-too-much-debt/ David Iben said it well when he said: “Volatility is not a risk that interests us. What matters to us is to avoid the permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We can see that Mayor […]]]>

David Iben said it well when he said: “Volatility is not a risk that interests us. What matters to us is to avoid the permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We can see that Mayor Tecnimont SpA (BIT:MT) uses debt in its business. But the more important question is: what risk does this debt create?

When is debt a problem?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, it exists at their mercy. In the worst case, a company can go bankrupt if it cannot pay its creditors. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. When we think about a company’s use of debt, we first look at cash and debt together.

See our latest analysis for Maire Tecnimont

What is Maire Tecnimont’s net debt?

The graph below, which you can click on for more details, shows that Maire Tecnimont had €820.6m in debt in March 2022; about the same as the previous year. On the other hand, he has €777.9 million in cash, resulting in a net debt of around €42.8 million.

BIT: MT Debt to Equity History June 12, 2022

A look at Maire Tecnimont’s past

According to the last balance sheet published, Maire Tecnimont had liabilities of 3.36 billion euros at less than 12 months and liabilities of 860.6 million euros at more than 12 months. In return, it had 777.9 million euros in cash and 2.55 billion euros in receivables due within 12 months. It therefore has liabilities totaling 890.8 million euros more than its cash and short-term receivables, combined.

This deficit is considerable compared to its market capitalization of 1.04 billion euros, so it invites shareholders to monitor the use of debt by Maire Tecnimont. If its lenders asked it to shore up its balance sheet, shareholders would likely face significant dilution.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). In this way, we consider both the absolute amount of debt, as well as the interest rates paid on it.

Maire Tecnimont has a low net debt to EBITDA ratio of just 0.30. And its EBIT easily covers its interest costs, which is 61.0 times the size. So we’re pretty relaxed about his super-conservative use of debt. On top of that, we are pleased to report that Maire Tecnimont increased its EBIT by 73%, reducing the specter of future debt repayments. The balance sheet is clearly the area to focus on when analyzing debt. But it is ultimately the company’s future profitability that will decide whether Maire Tecnimont can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

But our last consideration is also important, because a company cannot pay debt with paper profits; he needs cash. We must therefore clearly examine whether this EBIT generates a corresponding free cash flow. Over the past three years, Maire Tecnimont has recorded free cash flow representing 73% of its EBIT, which is about normal, given that free cash flow excludes interest and taxes. This cold hard cash allows him to reduce his debt whenever he wants.

Our point of view

The good news is that Maire Tecnimont’s demonstrated ability to cover its interest costs with its EBIT delights us like a fluffy puppy does a toddler. But, on a darker note, we’re a bit concerned about his total passive level. When we consider the range of factors above, it seems that Maire Tecnimont is quite sensitive with its use of debt. This means they take on a bit more risk, hoping to increase shareholder returns. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks reside on the balance sheet, far from it. For example, we have identified 1 warning sign for Mayor Tecnimont of which you should be aware.

If you are interested in investing in businesses that can generate profits without the burden of debt, then check out this free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Yuexiu Transport Infrastructure (HKG: 1052) takes some risk with its use of debt https://antochi.ro/yuexiu-transport-infrastructure-hkg-1052-takes-some-risk-with-its-use-of-debt/ Mon, 06 Jun 2022 23:34:57 +0000 https://antochi.ro/yuexiu-transport-infrastructure-hkg-1052-takes-some-risk-with-its-use-of-debt/ David Iben said it well when he said: “Volatility is not a risk that interests us. What matters to us is to avoid the permanent loss of capital. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. […]]]>

David Iben said it well when he said: “Volatility is not a risk that interests us. What matters to us is to avoid the permanent loss of capital. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. Like many other companies Yuexiu transport infrastructure limited (HKG:1052) uses debt. But does this debt worry shareholders?

When is debt dangerous?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are mercilessly liquidated by their bankers. However, a more frequent (but still costly) event is when a company has to issue shares at bargain prices, permanently diluting shareholders, just to shore up its balance sheet. That said, the most common situation is when a company manages its debt reasonably well – and to its own benefit. When we think about a company’s use of debt, we first look at cash and debt together.

See our latest analysis for Yuexiu Transport Infrastructure

What is Yuexiu’s transport infrastructure debt?

The image below, which you can click for more details, shows that Yuexiu Transport Infrastructure had a debt of 16.7 billion yen at the end of December 2021, a reduction from 17.7 billion yen on a year. However, he also had 2.92 billion yen in cash, so his net debt is 13.8 billion yen.

SEHK: 1052 Historical Debt to Equity June 6, 2022

How healthy is Yuexiu Transport Infrastructure’s balance sheet?

According to the latest published balance sheet, Yuexiu Transport Infrastructure had liabilities of 4.59 billion Canadian yen due within 12 months and liabilities of 16.6 billion domestic yen due beyond 12 months. In compensation for these obligations, it had cash of 2.92 billion yen as well as receivables valued at 374.4 million yen due within 12 months. It therefore has liabilities totaling 17.9 billion Canadian yen more than its cash and short-term receivables, combined.

The deficiency here weighs heavily on the CN¥6.26b business itself, like a child struggling under the weight of a huge backpack full of books, his sports gear and a trumpet. So we definitely think shareholders need to watch this one closely. Ultimately, Yuexiu Transport Infrastructure would likely need a major recapitalization if its creditors were to demand repayment.

We use two main ratios to inform us about debt to earnings levels. The first is net debt divided by earnings before interest, taxes, depreciation and amortization (EBITDA), while the second is how often its earnings before interest and taxes (EBIT) covers its interest expense (or its interests, for short). Thus, we consider debt to earnings with and without amortization and depreciation expense.

Yuexiu Transport Infrastructure’s debt is 4.7 times its EBITDA, and its EBIT covers its interest expense 2.7 times. Taken together, this implies that, while we wouldn’t like to see debt levels increase, we think he can manage his current leverage. On the bright side, Yuexiu Transport Infrastructure increased its EBIT by 41% last year. Like a mother’s loving embrace of a newborn, this kind of growth builds resilience, putting the company in a stronger position to manage its debt. There is no doubt that we learn the most about debt from the balance sheet. But ultimately, the company’s future profitability will decide whether Yuexiu Transport Infrastructure can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Finally, a business needs free cash flow to pay off its debts; book profits are not enough. It is therefore worth checking how much of this EBIT is supported by free cash flow. Fortunately for all shareholders, Yuexiu Transport Infrastructure has actually produced more free cash flow than EBIT over the past three years. This kind of strong cash generation warms our hearts like a puppy in a bumblebee suit.

Our point of view

We feel some trepidation about the difficulty level of Yuexiu Transport Infrastructure’s total passive, but we also have some positives to focus on. The EBIT to free cash flow conversion and the EBIT growth rate were encouraging signs. It should also be noted that companies in the infrastructure sector such as Yuexiu Transport Infrastructure generally use debt without problems. Looking at all the angles discussed above, it does seem to us that Yuexiu Transport Infrastructure is a somewhat risky investment due to its leverage. Not all risk is bad, as it can increase stock price returns if it pays off, but this leverage risk is worth keeping in mind. There is no doubt that we learn the most about debt from the balance sheet. But at the end of the day, every business can contain risks that exist outside of the balance sheet. Example: we have identified 4 warning signs for Yuexiu transportation infrastructure you should be aware of, and 2 of them should not be ignored.

In the end, it’s often best to focus on companies that aren’t in debt. You can access our special list of these companies (all with a track record of earnings growth). It’s free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Kayne Anderson NextGen Energy & Infrastructure Provides Unaudited Balance Sheet Information and Announces Net Asset Value and Asset Coverage Ratios as of May 31, 2022 https://antochi.ro/kayne-anderson-nextgen-energy-infrastructure-provides-unaudited-balance-sheet-information-and-announces-net-asset-value-and-asset-coverage-ratios-as-of-may-31-2022/ Thu, 02 Jun 2022 23:49:25 +0000 https://antochi.ro/kayne-anderson-nextgen-energy-infrastructure-provides-unaudited-balance-sheet-information-and-announces-net-asset-value-and-asset-coverage-ratios-as-of-may-31-2022/ Enter Wall Street with StreetInsider Premium. Claim your one week free trial here. HOUSTON, June 02, 2022 (GLOBE NEWSWIRE) — Kayne Anderson NextGen Energy & Infrastructure, Inc. (the “Fund”) (NYSE: KMF) today provided an unaudited summary statement of assets and liabilities and announced its net asset value and asset coverage ratios under the Investment Company […]]]>

Enter Wall Street with StreetInsider Premium. Claim your one week free trial here.


HOUSTON, June 02, 2022 (GLOBE NEWSWIRE) — Kayne Anderson NextGen Energy & Infrastructure, Inc. (the “Fund”) (NYSE: KMF) today provided an unaudited summary statement of assets and liabilities and announced its net asset value and asset coverage ratios under the Investment Company Act of 1940 (the “1940 Act”) as of May 31, 2022.

As of May 31, 2022, the Fund’s net assets were $496.9 million and its net asset value per share was $10.53. As of May 31, 2022, the Fund’s asset coverage ratio under the 1940 Act with respect to senior debt securities was 527% and the Fund’s asset coverage ratio under the 1940 Act for total leverage (debt and preferred stock) was 396%.

Kayne Anderson NextGen Energy & Infrastructure, Inc.
Statement of assets and liabilities
May 31, 2022
(Unaudited)
(in millions)
Investments $ 661.2
Cash and cash equivalents 1.2
Receivables on forward exchange contracts 1.9
Products to receive 1.5
other assets 0.8
Total assets 666.6
Credit facility 46.0
Remarks 80.1
Unamortized note issue costs (0.2 )
Favorite stock 41.5
Unamortized preferred share issue costs (0.6 )
Total leverage 166.8
Payable for titles purchased 0.3
Other liabilities 2.6
Total responsibilities 2.9
Net assets $ 496.9

The Fund had 47,197,462 common shares outstanding as of May 31, 2022.

As of May 31, 2022, equity and debt investments represented 99% and 1% of the Fund’s long-term investments, respectively. Long-term investments included Midstream Company (37%), Natural Gas & LNG Infrastructure Company (24%), Utility Company (17%), Renewable Infrastructure Company (17%), Other Energy (4%) and Debt (1% ).

The Fund’s top ten holdings by issuer as of May 31, 2022 were:

Amount (in millions)* Percentage of long-term investments
1. Targa Resources Corp. (Intermediate company) $ 45.3 6.9 %
2. Enterprise Products Partners LP (Intermediate Company) 44.2 6.7 %
3. The Williams Companies, Inc. (natural gas and LNG infrastructure company) 41.0 6.2 %
4. Cheniere Energy, Inc. (natural gas and LNG infrastructure company) 35.4 5.4 %
5. Energy Transfer LP (Intermediate company) 30.9 4.7 %
6. MPLX LP (Intermediate Company) 29.3 4.4 %
seven. TC Energy Corporation (natural gas and LNG infrastructure company) 27.4 4.1 %
8. DT Midstream, Inc. (Natural Gas and LNG Infrastructure Company) 23.3 3.5 %
9. Brookfield Renewable Partners LP** (Renewable infrastructure company) 23.1 3.5 %
ten. Kinder Morgan, Inc. (natural gas and LNG infrastructure company) 22.8 3.4 %

_________________

* Includes ownership of equity and debt securities investments.
** Includes ownership of Brookfield Renewable Partners, LP (“BEP”) and Brookfield Renewable Corporation (“BEPC”).

Portfolio holdings are subject to change without notice. Mention of specific securities does not constitute a recommendation or solicitation for anyone to buy, sell or hold any particular security. You can obtain a complete list of holdings by consulting the Fund’s most recent quarterly or annual report.

Kayne Anderson NextGen Energy & Infrastructure, Inc. (NYSE: KMF) is a non-diversified, privately held investment company registered under the Investment Company Act of 1940, as amended, whose common stock trades on the NYSE . The Fund’s investment objective is to provide a high total return with an emphasis on cash distributions to its shareholders. The Fund seeks to achieve its investment objective by investing at least 80% of its total assets in securities of energy companies and infrastructure companies. The Fund anticipates that the majority of its investments will consist of investments in “NextGen” companies, which we define as energy and infrastructure companies that significantly participate in or benefit from the energy transition. See Glossary of Key Terms in the Fund’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.

This press release does not constitute an offer to sell or a solicitation to buy, and there will be no sale of securities in any jurisdiction in which such offer or sale is not authorized. Nothing in this press release is intended to recommend any investment policy or strategy or to take into account any specific investor’s objectives or circumstances. Please consult your investment, tax or legal adviser regarding your personal circumstances before investing.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions or beliefs regarding future events. These and other statements that do not relate strictly to historical or current facts constitute forward-looking statements as defined by US federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal developments; energy sector risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Fund’s filings with the SEC, available at www.kaynefunds.com Where www.sec.gov. Actual events could differ materially from these statements or from our current expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There can be no assurance that the Fund’s investment objectives will be achieved.

Contact: Investor Relations at (877) 657-3863 or [email protected]

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Source: Kayne Anderson NextGen Energy & Infrastructure, Inc.

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Is Natera (NASDAQ:NTRA) weighed down by its debt? https://antochi.ro/is-natera-nasdaqntra-weighed-down-by-its-debt/ Mon, 30 May 2022 14:07:11 +0000 https://antochi.ro/is-natera-nasdaqntra-weighed-down-by-its-debt/ Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. Above all, […]]]>

Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The biggest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. Above all, Natera, Inc. (NASDAQ:NTRA) is in debt. But the real question is whether this debt makes the business risky.

Why is debt risky?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. If things go really bad, lenders can take over the business. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, many companies use debt to finance their growth, without any negative consequences. When we think about a company’s use of debt, we first look at cash and debt together.

See our latest analysis for Natera

What is Natera’s debt?

The graph below, which you can click on for more details, shows that Natera had $330.8 million in debt as of March 2022; about the same as the previous year. However, he has $752.0 million in cash to offset this, which translates to net cash of $421.2 million.

NasdaqGS: NTRA Debt to Equity History as of May 30, 2022

A look at Natera’s responsibilities

According to the last published balance sheet, Natera had liabilities of $231.1 million maturing within 12 months and liabilities of $371.3 million maturing beyond 12 months. In compensation for these obligations, it had cash of US$752.0 million as well as receivables valued at US$167.9 million and maturing within 12 months. So he actually has US$317.5 million After liquid assets than total liabilities.

This surplus suggests that Natera has a conservative balance sheet, and could probably eliminate its debt without too much difficulty. In short, Natera has clean cash, so it’s fair to say that it doesn’t have a lot of debt! The balance sheet is clearly the area to focus on when analyzing debt. But it is future earnings, more than anything, that will determine Natera’s ability to maintain a healthy balance sheet in the future. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

Last year, Natera was not profitable in terms of EBIT, but managed to increase its turnover by 49%, to $667 million. The shareholders probably have their fingers crossed that she can make a profit.

So how risky is Natera?

We have no doubt that loss-making companies are, in general, more risky than profitable companies. And the fact is that over the last twelve months, Natera has lost money in earnings before interest and taxes (EBIT). And during the same period, it recorded a negative free cash outflow of US$453 million and recorded a book loss of US$546 million. But the saving grace is the US$421.2 million on the balance sheet. This pot means that the company can continue to spend on growth for at least two years, at current rates. Natera’s revenue growth has shone over the past year, so it may well be in a position to turn a profit in due course. Nonprofits are often risky, but they can also offer great rewards. When analyzing debt levels, the balance sheet is the obvious starting point. But at the end of the day, every business can contain risks that exist outside of the balance sheet. Know that Natera shows 3 warning signs in our investment analysis you should know…

If, after all that, you’re more interested in a fast-growing company with a strong balance sheet, check out our list of cash-flowing growth stocks without further ado.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Clabo (BIT:CLA) seems to use a lot of debt https://antochi.ro/clabo-bitcla-seems-to-use-a-lot-of-debt/ Sat, 28 May 2022 06:29:47 +0000 https://antochi.ro/clabo-bitcla-seems-to-use-a-lot-of-debt/ Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when […]]]>

Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. Like many other companies Clabo SpA (BIT:CLA) uses debt. But should shareholders worry about its use of debt?

When is debt a problem?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. That said, the most common situation is when a company manages its debt reasonably well – and to its own benefit. When we think about a company’s use of debt, we first look at cash and debt together.

See our latest analysis for Clabo

What is Clabo’s net debt?

The chart below, which you can click on for more details, shows that Clabo had €37.5m in debt as of December 2021; about the same as the previous year. However, he has €2.08m in cash to offset this, resulting in a net debt of around €35.4m.

BIT:CLA Debt to Equity May 28, 2022

How healthy is Clabo’s balance sheet?

According to the last published balance sheet, Clabo had liabilities of 38.2 million euros at less than 12 months and liabilities of 36.4 million euros at more than 12 months. In return for these bonds, it had cash of €2.08 million as well as receivables worth €12.7 million maturing in less than 12 months. Its liabilities therefore total €59.8 million more than the combination of its cash and short-term receivables.

The deficiency here weighs heavily on the 24.6 million euro enterprise itself, like a child struggling under the weight of a huge backpack full of books, his sports equipment and a trumpet. We would therefore be watching his balance sheet closely, no doubt. Ultimately, Clabo would likely need a major recapitalization if its creditors were to demand repayment.

We measure a company’s leverage against its earning power by looking at its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT ) covers its interest charge (interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

Low interest coverage of 0.22x and an extremely high net debt to EBITDA ratio of 11.6 hit our confidence in Clabo like a punch in the gut. The debt burden here is considerable. However, the silver lining was that Clabo achieved a positive EBIT of €536,000 in the last twelve months, an improvement on the loss the previous year. When analyzing debt levels, the balance sheet is the obvious starting point. But you can’t look at debt in total isolation; since Clabo will need income to repay this debt. So, when considering debt, it is definitely worth looking at the earnings trend. Click here for an interactive preview.

Finally, a company can only repay its debts with cold hard cash, not with book profits. It is therefore worth checking how much of earnings before interest and tax (EBIT) is supported by free cash flow. Over the past year, Clabo has burned through a lot of cash. While this may be the result of spending for growth, it makes debt much riskier.

Our point of view

At first glance, Clabo’s conversion of EBIT to free cash flow left us hesitant about the stock, and its level of total liabilities was no more appealing than the single empty restaurant on the busiest night of the year. year. But at least its EBIT growth rate isn’t that bad. We think the chances of Clabo having too much debt are very high. For us, this means that the action is rather high risk, and probably to be avoided; but everyone has their own (investment) style. When analyzing debt levels, the balance sheet is the obvious starting point. However, not all investment risks reside on the balance sheet, far from it. To do this, you need to find out about the 3 warning signs we spotted some with Clabo (including 1 that should not be overlooked).

If, after all that, you’re more interested in a fast-growing company with a strong balance sheet, check out our list of cash-flowing growth stocks without further ado.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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