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Shanghai INT Medical Instruments Co (HKSE:01501) Long-Term Debt & Capital Lease Obligation : HK$17.1 Mil (As of Dec. 2023)


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What is Shanghai INT Medical Instruments 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. Shanghai INT Medical Instruments Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$17.1 Mil.

Warning Sign:

Shanghai INT Medical Instruments Co Ltd has been issuing new debt. Over the past 3 years, it issued CNY 87.158 million of debt. But overall, its debt level is acceptable.

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. Shanghai INT Medical Instruments Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was HK$17.1 Mil. Shanghai INT Medical Instruments Co's Total Assets for the quarter that ended in Dec. 2023 was HK$2,220.0 Mil. Shanghai INT Medical Instruments Co's LT-Debt-to-Total-Asset for the quarter that ended in Dec. 2023 was 0.01.

Shanghai INT Medical Instruments Co's LT-Debt-to-Total-Asset declined from Dec. 2022 (0.01) to Dec. 2023 (0.01). It may suggest that Shanghai INT Medical Instruments Co is progressively becoming less dependent on debt to grow their business.


Shanghai INT Medical Instruments Co Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Shanghai INT Medical Instruments 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.

Shanghai INT Medical Instruments Co Long-Term Debt & Capital Lease Obligation Chart

Shanghai INT Medical Instruments Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Long-Term Debt & Capital Lease Obligation
Get a 7-Day Free Trial 1.80 1.68 16.18 17.81 17.12

Shanghai INT Medical Instruments Co Semi-Annual Data
Dec16 Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Long-Term Debt & Capital Lease Obligation Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.18 15.71 17.81 16.72 17.12

Shanghai INT Medical Instruments 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.


Shanghai INT Medical Instruments Co  (HKSE:01501) 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.

Shanghai INT Medical Instruments Co's LT-Debt-to-Total-Asset ratio for the quarter that ended in Dec. 2023 is calculated as:

LT-Debt-to-Total-Asset (Q: Dec. 2023 )=Long-Term Debt & Capital Lease Obligation (Q: Dec. 2023 )/Total Assets (Q: Dec. 2023 )
=17.124/2219.962
=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


Shanghai INT Medical Instruments Co Long-Term Debt & Capital Lease Obligation Related Terms

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Shanghai INT Medical Instruments Co (HKSE:01501) Business Description

Traded in Other Exchanges
N/A
Address
No. 925 Jin Yuan Yi Road, Block 2, Jiading District, Shanghai, CHN, 201803
Shanghai INT Medical Instruments Co Ltd formerly Shanghai Kindly Medical Instruments Co Ltd is a manufacturer of cardiovascular interventional devices, which are mainly used in cardiovascular surgeries, and in particular, PCI procedures in China. It is engaged in the sales, manufacture, research, and development of cardiovascular interventional medical devices as well as related accessories and molds. It is also engaged in the research and development of other interventional and implantable medical devices, such as neurological interventional medical devices and endocardia implantable medical devices, among others. Geographically, it has operations in Mainland China, Europe, the United States, and Other countries.
Executives
China Orient Asset Management (international) Holding Limited 2201 Interest of corporation controlled by you
Jpmorgan Chase & Co. 2106 Person having a security interest in shares
Zhao Wei 2202 Interest of your spouse
Ningbo Huaige Gongxin Equity Investment Partnership (limited Partnership) 2201 Interest of corporation controlled by you
Ningbo Huaige Health Investment Management Partnership (limited Partnership) 2201 Interest of corporation controlled by you
Ningbo Huaige Taiyi Equity Investment Partnership (limited Partnership) 2101 Beneficial owner
Wang Kai 2201 Interest of corporation controlled by you
Zhao Wei 2202 Interest of your spouse
Shanghai Gongye Investment Co., Ltd. 2201 Interest of corporation controlled by you
Zhang Wei 2501 Other
Worldwide Healthcare Trust Plc 2101 Beneficial owner
Orbimed Capital Llc 2102 Investment manager
Zheng Aiping 2501 Other
Zhang Xianmiao 2501 Other
Zhang Wei 2501 Other

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