GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Guoquan Food (Shanghai) Co Ltd (HKSE:02517) » Definitions » Long-Term Debt & Capital Lease Obligation

Guoquan Food (Shanghai) Co (HKSE:02517) Long-Term Debt & Capital Lease Obligation : HK$49 Mil (As of Jun. 2024)


View and export this data going back to 2023. Start your Free Trial

What is Guoquan Food (Shanghai) 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. Guoquan Food (Shanghai) Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was HK$49 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. Guoquan Food (Shanghai) Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was HK$49 Mil. Guoquan Food (Shanghai) Co's Total Assets for the quarter that ended in Jun. 2024 was HK$4,726 Mil. Guoquan Food (Shanghai) Co's LT-Debt-to-Total-Asset for the quarter that ended in Jun. 2024 was 0.01.

Guoquan Food (Shanghai) Co's LT-Debt-to-Total-Asset increased from Jun. 2023 (0.00) to Jun. 2024 (0.01). It may suggest that Guoquan Food (Shanghai) Co is progressively becoming more dependent on debt to grow their business.


Guoquan Food (Shanghai) Co Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Guoquan Food (Shanghai) 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.

Guoquan Food (Shanghai) Co Long-Term Debt & Capital Lease Obligation Chart

Guoquan Food (Shanghai) Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Long-Term Debt & Capital Lease Obligation
20.00 25.04 21.67 22.21

Guoquan Food (Shanghai) Co Semi-Annual Data
Dec20 Dec21 Dec22 Jun23 Dec23 Jun24
Long-Term Debt & Capital Lease Obligation Get a 7-Day Free Trial 25.04 21.67 - 22.21 48.64

Guoquan Food (Shanghai) 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.


Guoquan Food (Shanghai) Co  (HKSE:02517) 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.

Guoquan Food (Shanghai) Co's LT-Debt-to-Total-Asset ratio for the quarter that ended in Jun. 2024 is calculated as:

LT-Debt-to-Total-Asset (Q: Jun. 2024 )=Long-Term Debt & Capital Lease Obligation (Q: Jun. 2024 )/Total Assets (Q: Jun. 2024 )
=48.643/4725.82
=0.01

* 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 company’s 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


Guoquan Food (Shanghai) Co Long-Term Debt & Capital Lease Obligation Related Terms

Thank you for viewing the detailed overview of Guoquan Food (Shanghai) Co's Long-Term Debt & Capital Lease Obligation provided by GuruFocus.com. Please click on the following links to see related term pages.


Guoquan Food (Shanghai) Co Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Lane 187, Xinghong Road, Room 802, No. 3, Minhang, Shanghai, CHN
Guoquan Food (Shanghai) Co Ltd is the rapidly growing home meal products brand in China. It offers a variety of ready-to-eat, ready-to-heat, ready-to-cook and prepared ingredients, with a focus on at-home hotpot and barbecue products. With a carefully curated product portfolio and an extensive network of community-based stores, it enables consumers to enjoy meals at home with convenience, affordability and tastiness. Leveraging its robust supply chain and production capabilities, The company offers a wide variety of home meal products under the Guoquan Shihui brand through a nationwide network of 9,844 retail stores in China, serving diverse dining scenarios.
Executives
Zhao Yin Guo Ji Zi Ben Guan Li Shen Zhen You Xian Gong Si
Generation One Holdings Ltd 2101 Beneficial owner
Vision Knight Capital (china) Fund Ii, L.p. 2201 Interest of corporation controlled by you
Vision Knight Capital (china) Gp Ii, L.p. 2201 Interest of corporation controlled by you
Vkc (china) Gp Ii Ltd. 2201 Interest of corporation controlled by you
Vkc Cayman Ii Ltd. 2201 Interest of corporation controlled by you
Ho Chi Sing 2201 Interest of corporation controlled by you
Wei Zhe 2201 Interest of corporation controlled by you
Zhao Shang Yin Xing Gu Fen You Xian Gong Si
Li Zhujie 2201 Interest of corporation controlled by you
Zhao Yin Guo Ji Jin Rong Kong Gu You Xian Gong Si
Zhao Yin Guo Ji Jin Rong You Xian Gong Si
Zhao Yin Jin Rong Kong Gu Shen Zhen You Xian Gong Si
Shang Hai Guo Xiao Quan Qi Ye Guan Li Zhong Xin You Xian He Huo 2101 Beneficial owner
San Quan Shi Pin Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you

Guoquan Food (Shanghai) Co Headlines

No Headlines