These Return Metrics Don't Make Changshu Tianyin ElectromechanicalLtd (SZSE:300342) Look Too Strong
These Return Metrics Don't Make Changshu Tianyin ElectromechanicalLtd (SZSE:300342) Look Too Strong
If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time? When we see a declining return on capital employed (ROCE) in conjunction with a declining base of capital employed, that's often how a mature business shows signs of aging. Trends like this ultimately mean the business is reducing its investments and also earning less on what it has invested. In light of that, from a first glance at Changshu Tianyin ElectromechanicalLtd (SZSE:300342), we've spotted some signs that it could be struggling, so let's investigate.
如果我们想避开衰退的业务,有哪些趋势可以提前警告我们?当我们看到下降时 返回 在资本使用率(ROCE)的下降的同时 基础 就所使用的资本而言,成熟的企业通常会以这种方式显示出老化的迹象。这样的趋势最终意味着该企业正在减少投资,同时也减少了其投资的收益。有鉴于此,乍一看常熟天银机电有限公司(SZSE: 300342),我们发现了一些可能陷入困境的迹象,所以让我们来调查一下。
Understanding Return On Capital Employed (ROCE)
了解资本使用回报率 (ROCE)
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Changshu Tianyin ElectromechanicalLtd, this is the formula:
对于那些不确定ROCE是什么的人,它衡量的是公司从其业务中使用的资本中可以产生的税前利润金额。要计算常熟天银机电有限公司的这个指标,公式如下:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已动用资本回报率 = 息税前收益(EBIT)÷(总资产-流动负债)
0.021 = CN¥33m ÷ (CN¥2.1b - CN¥543m) (Based on the trailing twelve months to September 2023).
0.021 = 3300万元人民币 ÷(21亿元人民币-5.43亿元人民币) (基于截至2023年9月的过去十二个月)。
Therefore, Changshu Tianyin ElectromechanicalLtd has an ROCE of 2.1%. In absolute terms, that's a low return and it also under-performs the Electrical industry average of 6.3%.
因此,常熟天音机电有限公司的投资回报率为2.1%。从绝对值来看,这是一个低回报,其表现也低于电气行业6.3%的平均水平。
See our latest analysis for Changshu Tianyin ElectromechanicalLtd
查看我们对常熟天音机电有限公司的最新分析
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240108/0-36d07635a3c7a370944a406d075dda69-0-bdf3d02f6be3a60fb8e8e33ce1f86bdd.png/big)
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings, revenue and cash flow of Changshu Tianyin ElectromechanicalLtd, check out these free graphs here.
虽然过去并不能代表未来,但了解一家公司的历史表现可能会有所帮助,这就是我们上面有这张图表的原因。如果您想深入了解常熟天音机电有限公司的历史收益、收入和现金流,请在此处查看这些免费图表。
What Can We Tell From Changshu Tianyin ElectromechanicalLtd's ROCE Trend?
我们可以从常熟天银机电有限公司的ROCE趋势中得出什么?
There is reason to be cautious about Changshu Tianyin ElectromechanicalLtd, given the returns are trending downwards. About five years ago, returns on capital were 12%, however they're now substantially lower than that as we saw above. And on the capital employed front, the business is utilizing roughly the same amount of capital as it was back then. This combination can be indicative of a mature business that still has areas to deploy capital, but the returns received aren't as high due potentially to new competition or smaller margins. If these trends continue, we wouldn't expect Changshu Tianyin ElectromechanicalLtd to turn into a multi-bagger.
鉴于回报率呈下降趋势,有理由对常熟天银机电有限公司持谨慎态度。大约五年前,资本回报率为12%,但现在已大大低于我们在上面看到的水平。在资本使用方面,该企业使用的资本量与当时大致相同。这种组合可能表明一家成熟的企业仍有资金部署的领域,但由于新的竞争或利润率降低,获得的回报并不那么高。如果这些趋势继续下去,我们预计常熟天银机电有限公司不会变成多装袋机。
What We Can Learn From Changshu Tianyin ElectromechanicalLtd's ROCE
我们可以从常熟天音机电有限公司的ROCE中学到什么
All in all, the lower returns from the same amount of capital employed aren't exactly signs of a compounding machine. However the stock has delivered a 81% return to shareholders over the last five years, so investors might be expecting the trends to turn around. In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.
总而言之,使用相同数量的资本所产生的较低回报并不完全是复利机器的迹象。但是,该股在过去五年中为股东带来了81%的回报,因此投资者可能会预期趋势会好转。无论如何,当前的潜在趋势对长期表现来说并不是一个好兆头,因此,除非趋势逆转,否则我们将开始将目光投向其他地方。
One final note, you should learn about the 4 warning signs we've spotted with Changshu Tianyin ElectromechanicalLtd (including 2 which are significant) .
最后一点是,你应该了解一下我们在常熟天音机电有限公司发现的4个警告标志(包括2个重要的警示标志)。
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
如果你想寻找收益丰厚的稳健公司,可以免费查看这份资产负债表良好且股本回报率可观的公司名单。
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.
对这篇文章有反馈吗?对内容感到担忧?直接联系我们。 或者,给编辑团队 (at) simplywallst.com 发送电子邮件。
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。