What Wuzhou Special Paper Group Co., Ltd.'s (SHSE:605007) ROE Can Tell Us
What Wuzhou Special Paper Group Co., Ltd.'s (SHSE:605007) ROE Can Tell Us
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Wuzhou Special Paper Group Co., Ltd. (SHSE:605007).
我们能做的最好的投资之一是我们自己的知识和技能。考虑到这一点,本文将探讨如何使用股本回报率(ROE)来更好地了解业务。通过边干边学的方式,我们将研究投资回报率,以更好地了解五洲特种纸业集团有限公司(SHSE: 605007)。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
ROE或股本回报率是评估公司如何有效地从股东那里获得的投资中获得回报的有用工具。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 Wuzhou Special Paper Group
查看我们对五洲特种纸业集团的最新分析
How Do You Calculate Return On Equity?
你如何计算股本回报率?
Return on equity can be calculated by using the formula:
股本回报率可以使用以下公式计算:
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 Wuzhou Special Paper Group is:
因此,根据上述公式,五洲特种纸业集团的投资回报率为:
3.9% = CN¥89m ÷ CN¥2.3b (Based on the trailing twelve months to September 2023).
3.9% = 8900万元人民币 ÷ 23亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' is the yearly profit. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.04 in profit.
“回报” 是每年的利润。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0.04元人民币的利润。
Does Wuzhou Special Paper Group Have A Good Return On Equity?
五洲特种纸业集团有良好的股本回报率吗?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. The image below shows that Wuzhou Special Paper Group has an ROE that is roughly in line with the Forestry industry average (3.9%).
通过将公司的投资回报率与其行业平均水平进行比较,我们可以快速衡量其表现如何。重要的是,这远非一个完美的衡量标准,因为各公司在相同的行业分类中差异很大。下图显示,五洲特种纸业集团的投资回报率与林业行业平均水平(3.9%)大致持平。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240124/0-b6b83c0179b60362a7bef2ac4e28150f-0-9330a3bf87afc6223d9ac70fe654789a.png/big)
That isn't amazing, but it is respectable. Even if the ROE is respectable when compared to the industry, its worth checking if the firm's ROE is being aided by high debt levels. If so, this increases its exposure to financial risk. Our risks dashboardshould have the 4 risks we have identified for Wuzhou Special Paper Group.
这并不奇怪,但值得尊敬。即使与行业相比,投资回报率可观,也值得检查一下公司的投资回报率是否受到高额债务水平的支撑。如果是这样,这会增加其金融风险敞口。我们的风险仪表板应该包含我们为五洲特种纸业集团确定的4种风险。
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 issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. 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.
实际上,所有公司都需要资金来投资业务,以增加利润。这些现金可以来自发行股票、留存收益或债务。在前两种情况下,ROE将利用这种资本来增长。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,债务的使用将提高投资回报率,尽管企业的核心经济状况保持不变。
Combining Wuzhou Special Paper Group's Debt And Its 3.9% Return On Equity
合并五洲特种纸业集团的债务及其3.9%的股本回报率
Wuzhou Special Paper Group does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.43. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
五洲特种纸业集团确实使用大量债务来增加回报。它的债务权益比率为1.43。即使使用了巨额债务,其投资回报率也相当低;在我们看来,这不是一个好结果。债务会增加风险,减少公司未来的选择,因此您通常希望从使用债务中获得丰厚的回报。
Conclusion
结论
Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. 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.
股本回报率对于比较不同业务的质量很有用。能够在没有债务的情况下实现高股本回报率的公司可以被视为高质量的企业。如果两家公司的债务与股权比率大致相同,而一家公司的投资回报率更高,那么我通常更喜欢投资回报率更高的那家公司。
But when a business is high quality, the market often bids it up to a price that reflects this. 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 take a peek at this data-rich interactive graph of forecasts for the company.
但是,当企业质量很高时,市场通常会以反映这一点的价格出价。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,你可能想看看这张数据丰富的公司预测交互式图表。
Of course Wuzhou Special Paper Group 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,五洲特种纸业集团可能不是最好的买入股票。因此,您不妨免费查看其他投资回报率高、负债率低的公司的名单。
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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。