Does Shanghai Electric Power Co., Ltd. (SHSE:600021) Create Value For Shareholders?
Does Shanghai Electric Power Co., Ltd. (SHSE:600021) Create Value For Shareholders?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Shanghai Electric Power Co., Ltd. (SHSE:600021), by way of a worked example.
尽管一些投资者已经精通财务指标(帽子提示),但本文适用于那些想了解股本回报率(ROE)及其重要性的人。我们将使用投资回报率来考察上海电力有限公司(SHSE: 600021),举一个有效的例子。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回报率或投资回报率是用于评估公司管理层利用公司资本效率的关键衡量标准。简而言之,它衡量公司相对于股东权益的盈利能力。
Check out our latest analysis for Shanghai Electric Power
查看我们对上海电力的最新分析
How To Calculate Return On Equity?
如何计算股本回报率?
The formula for ROE is:
投资回报率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营)÷ 股东权益
So, based on the above formula, the ROE for Shanghai Electric Power is:
因此,根据上述公式,上海电力的投资回报率为:
6.8% = CN¥3.5b ÷ CN¥51b (Based on the trailing twelve months to September 2023).
6.8% = 35亿元人民币 ÷ 51亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.07 in profit.
“回报” 是过去十二个月的利润。将其概念化的一种方法是,公司每拥有1元人民币的股东资本,公司就会获得0.07元的利润。
Does Shanghai Electric Power Have A Good Return On Equity?
上海电力有良好的股本回报率吗?
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. If you look at the image below, you can see Shanghai Electric Power has a similar ROE to the average in the Renewable Energy industry classification (7.0%).
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,因为各公司在相同的行业分类中差异很大。如果你看下图,你会发现上海电力的投资回报率与可再生能源行业分类中的平均水平(7.0%)相似。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240103/0-1e33df2149274d1426887b6301bcfc4e-0-8c348445853c13261422a2fbcacb3dd5.png/big)
That isn't amazing, but it is respectable. While at least the ROE is not lower than the industry, its still worth checking what role the company's debt plays as high debt levels relative to equity may also make the ROE appear high. If true, then it is more an indication of risk than the potential.
这并不奇怪,但值得尊敬。尽管至少投资回报率不低于该行业,但仍值得检查该公司的债务起了什么作用,因为相对于股权的高债务水平也可能使投资回报率显得很高。如果属实,则与其说是潜在风险,不如说是风险。
Why You Should Consider Debt When Looking At ROE
为什么在考虑投资回报率时应该考虑债务
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 first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used.
几乎所有公司都需要资金来投资业务,增加利润。这些现金可以来自留存收益、发行新股(股权)或债务。在前两个案例中,投资回报率将涵盖这种资本用于增长的用途。在后一种情况下,债务的使用将提高回报,但不会改变股权。这将使投资回报率看起来比不使用债务时更好。
Combining Shanghai Electric Power's Debt And Its 6.8% Return On Equity
合并上海电力的债务及其6.8%的股本回报率
It's worth noting the high use of debt by Shanghai Electric Power, leading to its debt to equity ratio of 1.93. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. 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.
值得注意的是,上海电力大量使用债务,导致其负债权益比率为1.93。由于投资回报率相当低,而且债务使用量很大,目前很难对这项业务感到兴奋。投资者应该仔细考虑如果一家公司无法如此轻易地借款,其表现会如何,因为信贷市场确实会随着时间的推移而发生变化。
Summary
摘要
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
股本回报率是衡量企业创造利润并将其返还给股东的能力的有用指标。能够在没有过多债务的情况下实现高股本回报率的公司通常质量良好。如果两家公司的债权与股本水平大致相同,而一家的投资回报率更高,我通常更喜欢投资回报率更高的公司。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREE visualization of analyst forecasts for the company.
话虽如此,尽管投资回报率是衡量业务质量的有用指标,但你必须考虑一系列因素来确定购买股票的正确价格。相对于当前价格所反映的利润增长预期,还必须考虑利润可能的增长速度。因此,您可能需要查看该公司的分析师预测的免费可视化。
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
如果你更愿意去另一家公司——一家财务状况可能优越的公司——那么千万不要错过这份免费的股本回报率高、债务低的有趣公司的名单。
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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.
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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提供基于历史数据和分析师预测的评论,我们的文章并非旨在提供财务建议。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,我们的分析可能不会考虑最新的价格敏感型公司公告或定性材料。华尔街只是没有持有上述任何股票的头寸。