What is Irico Group New Energy Co 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. Irico Group New Energy Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$2,558 Mil.
Warning Sign:
Irico Group New Energy Co Ltd keeps issuing new debt. Over the past 3 years, it issued CNY 3.2 billion of debt.
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. Irico Group New Energy Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$2,558 Mil. Irico Group New Energy Co's Total Assets for the quarter that ended in Dec. 2023 was HK$9,669 Mil. Irico Group New Energy Co's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2023 was 0.27.
Irico Group New Energy Co Long-Term Debt & Capital Lease Obligation Historical Data
The historical data trend for Irico Group New Energy Co's Long-Term Debt & Capital Lease Obligation can be seen below:
* 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.
* Premium members only.
Irico Group New Energy Co Long-Term Debt & Capital Lease Obligation Chart
Irico Group New Energy Co 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.
Irico Group New Energy Co (HKSE:00438) 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.
Irico Group New Energy Co's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2023 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
Irico Group New Energy Co Long-Term Debt & Capital Lease Obligation Related Terms
Thank you for viewing the detailed overview of Irico Group New Energy Co's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.
Irico Group New Energy Co (HKSE:00438) Business Description
Irico Group New Energy Co Ltd is mainly engaged in the solar photovoltaic business. It operates through the following segments: Solar photovoltaic & module business segment, and Others. The majority of its revenue is derived from Solar Photovoltaic, which includes Solar photovoltaic glass, Solar photovoltaic modules, Solar photovoltaic power stations, and Quartz sand business. Its geographical segments are China (excluding Hong Kong), Hong Kong, and Other countries, of which the majority of its revenue comes from China.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:00438 has been successfully added to your 