Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at Guangdong Provincial Expressway Development (SZSE:200429) and its trend of ROCE, we really liked what we saw.
Return On Capital Employed (ROCE): What Is It?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Guangdong Provincial Expressway Development is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.17 = CN¥2.9b ÷ (CN¥20b - CN¥2.5b) (Based on the trailing twelve months to June 2022).
So, Guangdong Provincial Expressway Development has an ROCE of 17%. In absolute terms, that's a satisfactory return, but compared to the Infrastructure industry average of 5.5% it's much better.
Check out our latest analysis for Guangdong Provincial Expressway Development
SZSE:200429 Return on Capital Employed October 26th 2022
In the above chart we have measured Guangdong Provincial Expressway Development's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Guangdong Provincial Expressway Development here for free.
What Can We Tell From Guangdong Provincial Expressway Development's ROCE Trend?
Guangdong Provincial Expressway Development has not disappointed with their ROCE growth. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 64% in that same time. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward.
The Bottom Line On Guangdong Provincial Expressway Development's ROCE
To sum it up, Guangdong Provincial Expressway Development is collecting higher returns from the same amount of capital, and that's impressive. Considering the stock has delivered 16% to its stockholders over the last five years, it may be fair to think that investors aren't fully aware of the promising trends yet. Given that, we'd look further into this stock in case it has more traits that could make it multiply in the long term.
If you'd like to know about the risks facing Guangdong Provincial Expressway Development, we've discovered 1 warning sign that you should be aware of.
While Guangdong Provincial Expressway Development isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
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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.
找到一家具有大幅增长潜力的企业并非易事,但如果我们看看几个关键的财务指标,这是可能的。一种常见的方法是尝试找到一家拥有退货已使用资本(ROCE)正在增加,同时也在增长金额已动用资本的比例。归根结底,这表明它是一家正在以越来越高的回报率对利润进行再投资的企业。所以当我们看着广东省内高速公路的发展(SZSE:200429)和它的ROCE趋势,我们真的很喜欢我们看到的。
资本回报率(ROCE):它是什么?
如果你以前没有使用过ROCE,它衡量的是一家公司从业务资本中获得的“回报”(税前利润)。广东省高速公路发展的计算公式为:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.17=CN元29亿?(CN元200亿-CN元25亿)(根据截至2022年6月的往绩12个月计算).
所以,广东省高速公路发展的净资产收益率为17%。就绝对值而言,这是一个令人满意的回报率,但与基础设施行业5.5%的平均回报率相比,这要好得多。
查看我们对广东省高速公路发展的最新分析
深圳证交所:2022年10月26日资本回报率200429
在上面的图表中,我们比较了广东省高速公路发展公司之前的净资产收益率和之前的业绩,但可以说,未来更重要。如果你愿意,你可以在这里查看广东省高速公路发展分析师的预测免费的。
从广东省高速公路发展的ROCE趋势中我们可以看出什么?
广东省高速公路发展并没有对他们的ROCE增长感到失望。更具体地说,尽管该公司在过去五年中使用的资本相对持平,但同期ROCE却攀升了64%。基本上,这项业务从相同数额的资本中产生了更高的回报,这证明了公司的效率有所提高。在这方面,情况看起来很好,所以值得探讨管理层对未来增长计划的看法。
广东省高速公路发展ROCE的底线
总而言之,广东省高速公路发展从相同的资本中获得了更高的回报,这是令人印象深刻的。考虑到该股在过去五年中为股东带来了16%的收益,我们或许可以公平地认为,投资者还没有完全意识到前景看好。有鉴于此,我们会进一步研究这只股票,以防它有更多的特征,使其在长期内成倍增长。
如果你想了解广东省高速公路发展面临的风险,我们发现1个警告标志这一点你应该知道。
虽然广东省高速公路发展并没有获得最高的回报,但看看这个免费资产负债表稳健、股本回报率高的公司名单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。