Is Henan Shenhuo Coal & Power Co.,Ltd's (SZSE:000933) 29% ROE Better Than Average?
Is Henan Shenhuo Coal & Power Co.,Ltd's (SZSE:000933) 29% ROE Better Than Average?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Henan Shenhuo Coal & Power Co.,Ltd (SZSE:000933), by way of a worked example.
许多投资者仍在学习分析股票时可能有用的各种指标。本文适用于那些想了解股本回报率(ROE)的人。我们将使用ROE来检查河南神火煤电有限公司,Ltd(深圳证券交易所代码:000933),举一个实例。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或投资回报率是股东需要考虑的重要因素,因为它可以告诉他们资本再投资的有效性。简而言之,它用于评估公司相对于其股权资本的盈利能力。
View our latest analysis for Henan Shenhuo Coal & PowerLtd
查看我们对河南神火煤电有限公司的最新分析
How Do You Calculate Return On Equity?
你如何计算股本回报率?
The formula for ROE is:
ROE 的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Henan Shenhuo Coal & PowerLtd is:
因此,根据上述公式,河南神火煤电有限公司的投资回报率为:
29% = CN¥6.5b ÷ CN¥22b (Based on the trailing twelve months to September 2023).
29% = 65亿元人民币 ¥22亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' is the amount earned after tax over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.29 in profit.
“申报表” 是过去十二个月的税后收入金额。这意味着,每获得价值1元人民币的股东权益,公司就会产生0.29元人民币的利润。
Does Henan Shenhuo Coal & PowerLtd Have A Good ROE?
河南神火煤电有限公司的投资回报率是否良好?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. Pleasingly, Henan Shenhuo Coal & PowerLtd has a superior ROE than the average (7.0%) in the Metals and Mining industry.
可以说,评估公司投资回报率的最简单方法是将其与行业平均水平进行比较。重要的是,这远非完美的衡量标准,因为同一行业分类中的公司差异很大。令人高兴的是,河南神火煤电有限公司的投资回报率高于金属和采矿业的平均水平(7.0%)。
That's clearly a positive. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk.
这显然是积极的。但是,请记住,较高的投资回报率并不一定表示有效的利润产生。尤其是当一家公司使用高额债务为其债务融资时,这可能会提高其投资回报率,但高杠杆率使公司处于危险之中。
How Does Debt Impact Return On Equity?
债务如何影响股本回报率?
Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
几乎所有公司都需要资金来投资业务,以增加利润。这些现金可能来自留存收益、发行新股(股权)或债务。对于第一和第二种选择,投资回报率将反映这种对现金增长的使用。在后一种情况下,增长所需的债务将提高回报,但不会影响股东权益。通过这种方式,尽管企业的核心经济保持不变,但债务的使用将提高投资回报率。
Combining Henan Shenhuo Coal & PowerLtd's Debt And Its 29% Return On Equity
合并河南神火煤电有限公司的债务及其29%的股本回报率
Henan Shenhuo Coal & PowerLtd clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.20. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
河南神火煤电有限公司显然使用大量债务来提高回报,因为其负债权益比率为1.20。尽管毫无疑问,其投资回报率令人印象深刻,但如果该公司以较低的债务实现这一目标,我们会给我们留下更深刻的印象。投资者应该仔细考虑如果一家公司无法如此轻易地借款,它会如何表现,因为信贷市场确实会随着时间的推移而变化。
Conclusion
结论
Return on equity is useful for comparing the quality of different businesses. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回报率对于比较不同业务的质量很有用。在我们的账簿中,尽管债务很低,但质量最高的公司的股本回报率却很高。如果两家公司的投资回报率相同,那么我通常更喜欢负债较少的公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company.
但是投资回报率只是更大难题中的一部分,因为高质量的企业通常以高倍的收益进行交易。重要的是要考虑其他因素,例如未来的利润增长,以及未来需要多少投资。因此,您可能需要查看该公司的分析师预测的免费可视化效果。
Of course Henan Shenhuo Coal & PowerLtd may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
当然,河南神火煤电有限公司可能不是最值得买入的股票。因此,您可能希望看到这份免费收藏的其他投资回报率高、债务低的公司。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。