What is China Biologic Products Holdings Long-Term Debt & Capital Lease Obligation?
Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. China Biologic Products Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was $0.0 Mil.
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. China Biologic Products Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was $0.0 Mil. China Biologic Products Holdings's Total Assets for the quarter that ended in Sep. 2020 was $2,139.5 Mil. China Biologic Products Holdings's LT-Debt-to-Total-Asset for the quarter that ended in Sep. 2020 was 0.00.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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China Biologic Products Holdings Long-Term Debt & Capital Lease Obligation Chart
China Biologic Products Holdings Long-Term Debt & Capital Lease Obligation Calculation
Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.
Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.
The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.
A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.
China Biologic Products Holdings (NAS:CBPO) Long-Term Debt & Capital Lease Obligation Explanation
LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.
China Biologic Products Holdings's LT-Debt-to-Total-Asset ratio for the quarter that ended in Sep. 2020 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.
We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.
Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)
Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.
BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.
If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.
Important: little or no long term debt often means a Good Long Term Bet
China Biologic Products Holdings Long-Term Debt & Capital Lease Obligation Related Terms
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China Biologic Products Holdings (China Biologic Products Holdings) Business Description
China Biologic Products Holdings Inc is a biopharmaceutical company principally engaged in the research, development, manufacturing and sales of human plasma-based products in China. The company operates its business through two majority owned subsidiaries, Shandong Taibang and Guizhou Taibang. China Biologic's product pipeline includes a variety of dosages across multiple product categories. Its principal products are human albumin and immunoglobulin for intravenous injection. All of the company's products are prescription medicines administered in the form of injections. China Biologic's sales model focuses on direct sales to hospitals and inoculation centers and is complemented by distributor sales.
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