<div id="readability-page-1"><div><p>Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that '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.  As with many other companies <strong>Bosideng International Holdings Limited</strong> (HKG:3998) makes use of debt.  But the real question is whether this debt is making the company risky.</p><p>This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.</p><h2> What Risk Does Debt Bring? </h2><p> Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy.  Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing.  However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control.  Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return.  The first thing to do when considering how much debt a business uses is to look at its cash and debt together. </p> <h2> What Is Bosideng International Holdings's Debt? </h2><p> As you can see below, Bosideng International Holdings had CN¥977.7m of debt at September 2025, down from CN¥2.71b a year prior.    However, its balance sheet shows it holds CN¥8.98b in cash, so it actually has CN¥8.00b net cash.  </p><figure><img height="1052" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/6462589-debt-equity-history-analysis-1-dark-2/1765925917449?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1642" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/6462589-debt-equity-history-analysis-1-dark-2/1765925917449"/><figcaption>SEHK:3998 Debt to Equity History December 16th 2025</figcaption></figure><h2> A Look At Bosideng International Holdings' Liabilities </h2><p> According to the last reported balance sheet, Bosideng International Holdings had liabilities of CN¥11.4b due within 12 months, and liabilities of CN¥740.4m due beyond 12 months.   Offsetting these obligations, it had cash of CN¥8.98b as well as receivables valued at CN¥5.42b due within 12 months.   So it actually has CN¥2.22b <em>more</em> liquid assets than total liabilities.   </p><p> This surplus suggests that Bosideng International Holdings has a conservative balance sheet, and could probably eliminate its debt without much difficulty.     Simply put, the fact that Bosideng International Holdings has more cash than debt is arguably a good indication that it can manage its debt safely.  </p><p><span> Check out our latest analysis for Bosideng International Holdings </span></p> <p> Fortunately, Bosideng International Holdings grew its EBIT by 8.7% in the last year, making that debt load look even more manageable.      The balance sheet is clearly the area to focus on when you are analysing debt.  But it is future earnings, more than anything, that will determine Bosideng International Holdings's ability to maintain a healthy balance sheet going forward.  So if you're focused on the future you can check out this <strong>free</strong> report showing analyst profit forecasts. </p><p> Finally, a company can only pay off debt with cold hard cash, not accounting profits.   While Bosideng International Holdings has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance.    Over the most recent three years, Bosideng International Holdings recorded free cash flow worth 77% of its EBIT, which is around normal, given free cash flow excludes interest and tax.  This free cash flow puts the company in a good position to pay down debt, when appropriate.   </p> <h2>Summing Up</h2><p> While it is always sensible to investigate a company's debt, in this case Bosideng International Holdings has CN¥8.00b in net cash and a decent-looking balance sheet.     The cherry on top was that in converted 77% of that EBIT to free cash flow, bringing in CN¥3.1b.     So we don't think Bosideng International Holdings's use of debt is risky.    When analysing debt levels, the balance sheet is the obvious place to start.  However, not all investment risk resides within the balance sheet - far from it.   For instance, we've identified  <strong> 2 warning signs for Bosideng International Holdings</strong>  that you should be aware of.   </p> <p> Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today. </p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

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<p>Bosideng International Holdings (HKG:3998) has CN¥8.00b in net cash, indicating a strong balance sheet. The company reduced its debt from CN¥2.71b to CN¥977.7m and holds CN¥8.98b in cash. With liabilities of CN¥11.4b due within 12 months, Bosideng has CN¥2.22b more liquid assets than total liabilities. It converted 77% of EBIT to free cash flow, suggesting it can manage debt safely. Despite debt, Bosideng's financial position appears stable, with growth in EBIT and strong cash flow conversion.</p>

Bosideng International Holdings (HKG:3998) Could Easily Take On More Debt