I wonder if any club has sold their two best midfielders in the same window for a combined £110m+ and not replaced either of them?
I'm a simpleton - is what you have written good news or bad news?All the facts and quotes are drawn from the four articles/reports linked at the bottom of this post:
"Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Fosun International Limited (HKG:656) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
When Is Debt A Problem?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
See our latest analysis for Fosun International
What Is Fosun International's Debt?
The image below, which you can click on for greater detail, shows that Fosun International had debt of CN¥228.7b at the end of December 2022, a reduction from CN¥243.4b over a year. However, because it has a cash reserve of CN¥157.8b, its net debt is less, at about CN¥70.9b.
SEHK:656 Debt to Equity History May 6th 2023
How Strong Is Fosun International's Balance Sheet?
According to the last reported balance sheet, Fosun International had liabilities of CN¥372.4b due within 12 months, and liabilities of CN¥251.1b due beyond 12 months. Offsetting these obligations, it had cash of CN¥157.8b as well as receivables valued at CN¥62.5b due within 12 months. So its liabilities total CN¥403.2b more than the combination of its cash and short-term receivables.
This deficit casts a shadow over the CN¥39.0b company, like a colossus towering over mere mortals. So we'd watch its balance sheet closely, without a doubt. After all, Fosun International would likely require a major re-capitalisation if it had to pay its creditors today."
My emphasis. So far Fosun have stayed afloat simply by selling assets, which allowed for a small reduction in overall debt, and allowed for their credit rating to be moved up to "stable" from "negative" in the three quarters preceding the last financial report in the spring of this year. Their plan is to further reduce overall debt, by paying off bond maturities through further asset sales. Both Thomas Cook, acquired only a few years ago, and Club Med are being actively touted for sale, with heavy weights Rothschild trying to find a buyer. According to the S&P report, Fosun will continue to look to sell assests and concentrate on so-called core businesses. What is core and what is peripheral in terms of Fosun's portfolio is difficult to establish, as they are a corporate entity that has spread into many diverse areas. And after all it wasnt so long ago that Jeff Shi was reassuring us that Wolves were a "legacy" project, that Fosun were wholly commited to.
Debt and a lack of easily saleable assets is not Fosun's only pressing problem, however. In the last year's financial report, Fosun's earnings before interest and tax, (EBIT) reportedly ran at a loss, which, of course, puts the debt mountain into a different perspective. A company making good annual profits is putting debt to good use in turning a profit and growing the company. But the opposite holds true.
Generally the financial press/industry view Fosun pessimistically, (what Simply Wall Street call an intense disaffinity for Fosun stock), and their share price is at a five year low. Fosun however predict a near 50% rise in earnings for the current financial year, and look to further sell assets to reduce debt.
Are Wolves one of those assets? From all the above recently revealed financial figures, such a sale certainly cannot be ruled out.
Here are the articles to have a look at:
Is Fosun International (HKG:656) Using Debt Sensibly?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...simplywall.st
China Billionaire’s Fosun Gets S&P Ratings Boost After Cutting Debt By $3 Billion; Stock Rises
Shanghai-based investment company's assets include Club Medwww.forbes.com
https://news.sky.com/story/chinese-...ital-goods/hkg-656/fosun-international-sharesFosun International (SEHK:656) - Stock Price, News & Analysis - Simply Wall St
Research Fosun International's (SEHK:656) stock price, latest news & stock analysis. Find everything from its Valuation, Future Growth, Past Performance and more.simplywall.st
I'd prefer the latter for sure. However, the grass isn't always greener. If we got American owners, I'd really not like that. On the other hand, the Saudis are most welcome!
I really do think thats a very odd way round.
Saudis will throw money at it whilst the Yanks will run it as a business.
Pinocchio will do one about Esports
“Wolves ay we….. one pack…… What other slogan did I forget?”
I think Fosun's time is done is the basic takeaway from the latest news and analysis, which is what the articles quoted imply.
The modern game does make you very cynical.
Where is that from?
Not really. From what I have seen over the past few years, Americans buy a football club to make money and don't want to invest. Saudis buy football clubs for soft power and making money from them isn't their objective. The Saudi owners pump money into their clubs, Americans do not.
Fine, I am not a fan of Saudi politics, and i do understand "realpolitik".
I'm not a fan of Saudi politics either, but my concern here is the club.
Ah yes, perhaps I should be saying Middle Eastern investment instead of limiting to Saudi
brilliant post mate, might be worth a short summary at the end for people who scan read postsAll the facts and quotes are drawn from the four articles/reports linked at the bottom of this post:
"Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Fosun International Limited (HKG:656) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
When Is Debt A Problem?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. If things get really bad, the lenders can take control of the business. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
See our latest analysis for Fosun International
What Is Fosun International's Debt?
The image below, which you can click on for greater detail, shows that Fosun International had debt of CN¥228.7b at the end of December 2022, a reduction from CN¥243.4b over a year. However, because it has a cash reserve of CN¥157.8b, its net debt is less, at about CN¥70.9b.
How Strong Is Fosun International's Balance Sheet?
According to the last reported balance sheet, Fosun International had liabilities of CN¥372.4b due within 12 months, and liabilities of CN¥251.1b due beyond 12 months. Offsetting these obligations, it had cash of CN¥157.8b as well as receivables valued at CN¥62.5b due within 12 months. So its liabilities total CN¥403.2b more than the combination of its cash and short-term receivables.
This deficit casts a shadow over the CN¥39.0b company, like a colossus towering over mere mortals. So we'd watch its balance sheet closely, without a doubt. After all, Fosun International would likely require a major re-capitalisation if it had to pay its creditors today."
My emphasis. So far Fosun have stayed afloat simply by selling assets, which allowed for a small reduction in overall debt, and allowed for their credit rating to be moved up to "stable" from "negative" in the three quarters preceding the last financial report in the spring of this year. Their plan is to further reduce overall debt, by paying off bond maturities through further asset sales. Both Thomas Cook, acquired only a few years ago, and Club Med are being actively touted for sale, with heavy weights Rothschild trying to find a buyer. According to the S&P report, Fosun will continue to look to sell assests and concentrate on so-called core businesses. What is core and what is peripheral in terms of Fosun's portfolio is difficult to establish, as they are a corporate entity that has spread into many diverse areas. And after all it wasnt so long ago that Jeff Shi was reassuring us that Wolves were a "legacy" project, that Fosun were wholly commited to.
Debt and a lack of easily saleable assets is not Fosun's only pressing problem, however. In the last year's financial report, Fosun's earnings before interest and tax, (EBIT) reportedly ran at a loss, which, of course, puts the debt mountain into a different perspective. A company making good annual profits is putting debt to good use in turning a profit and growing the company. But the opposite holds true.
Generally the financial press/industry view Fosun pessimistically, (what Simply Wall Street call an intense disaffinity for Fosun stock), and their share price is at a five year low. Fosun however predict a near 50% rise in earnings for the current financial year, and look to further sell assets to reduce debt.
Are Wolves one of those assets? From all the above recently revealed financial figures, such a sale certainly cannot be ruled out.
Here are the articles to have a look at:
Is Fosun International (HKG:656) Using Debt Sensibly?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
China Billionaire’s Fosun Gets S&P Ratings Boost After Cutting Debt By $3 Billion; Stock Rises
Shanghai-based investment company's assets include Club Med
https://news.sky.com/story/chinese-...ital-goods/hkg-656/fosun-international-sharesFosun International (SEHK:656) - Stock Price, News & Analysis - Simply Wall St
Research Fosun International's (SEHK:656) stock price, latest news & stock analysis. Find everything from its Valuation, Future Growth, Past Performance and more.
I dont think Wolves will be sold until the ManUre sale is complete, and then one of the losing parties there "may" look elsewhere.
Nobody’s said they CAN’T afford the price it maybe they didn’t want to pay the asking price. Personally I hope it’s true - this club are going nowhere with Fosun in charge so for me the sooner they’re gone the better #FosunOut
Would of thought it be in media if it was anywhere near
Todd Boehly does.
I think he is the exception mate. Middle Eastern owners seem to be buying football clubs for soft power, not profit.
Stan Kroenke is American. Arsenal have spent loads.
Spending this summer and sustained spending over a number of years are two completely different things. Look at Man City and PSG. They spend money like it's water. They have no interest in recouping that money. I'm pretty sure all those American owners you have mentioned would want their money made back.
Yeah, they're pretty much banging the doors down....
