J&T Global Express (HKG:1519) Has A Pretty Healthy Balance Sheet

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.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. As with many other companies J&T Global Express Limited (HKG:1519) makes use of debt. But the more important question is: how much risk is that debt creating?

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

What Risk Does Debt Bring?

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. 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, plenty of companies use debt to fund growth, without any negative consequences. The first step when considering a company's debt levels is to consider its cash and debt together.

What Is J&T Global Express's Net Debt?

The image below, which you can click on for greater detail, shows that at June 2025 J&T Global Express had debt of US$1.71b, up from US$1.40b in one year. But on the other hand it also has US$1.91b in cash, leading to a US$199.7m net cash position.

How Healthy Is J&T Global Express' Balance Sheet?

The latest balance sheet data shows that J&T Global Express had liabilities of US$2.45b due within a year, and liabilities of US$2.33b falling due after that. Offsetting this, it had US$1.91b in cash and US$696.5m in receivables that were due within 12 months. So it has liabilities totalling US$2.18b more than its cash and near-term receivables, combined.

Since publicly traded J&T Global Express shares are worth a very impressive total of US$11.3b, it seems unlikely that this level of liabilities would be a major threat. But there are sufficient liabilities that we would certainly recommend shareholders continue to monitor the balance sheet, going forward. Despite its noteworthy liabilities, J&T Global Express boasts net cash, so it's fair to say it does not have a heavy debt load!

Check out our latest analysis for J&T Global Express

Notably, J&T Global Express's EBIT launched higher than Elon Musk, gaining a whopping 568% on last year. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine J&T Global Express's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. While J&T Global Express 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 last two years, J&T Global Express actually produced more free cash flow than EBIT. That sort of strong cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.

Summing Up

Although J&T Global Express's balance sheet isn't particularly strong, due to the total liabilities, it is clearly positive to see that it has net cash of US$199.7m. The cherry on top was that in converted 230% of that EBIT to free cash flow, bringing in US$263m. So we don't think J&T Global Express's use of debt is risky. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For example - J&T Global Express has 1 warning sign we think you should be aware of.

At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.