Jiangsu Sunshine's (SHSE:600220) Returns On Capital Not Reflecting Well On The Business
Jiangsu Sunshine's (SHSE:600220) Returns On Capital Not Reflecting Well On The Business
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. Basically the company is earning less on its investments and it is also reducing its total assets. On that note, looking into Jiangsu Sunshine (SHSE:600220), we weren't too upbeat about how things were going.
如果我们想避开一家衰退的企业,那么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。基本上,该公司的投资收入减少了,而且总资产也在减少。从这个角度来看,纵观江苏阳光(SHSE: 600220),我们对事情的发展并不太乐观。
Return On Capital Employed (ROCE): What Is It?
资本使用回报率(ROCE):这是什么?
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 Jiangsu Sunshine is:
如果你以前没有与ROCE合作过,它会衡量公司从其业务中使用的资本中产生的 “回报”(税前利润)。在江苏阳光上进行此计算的公式为:
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)
0.07 = CN¥161m ÷ (CN¥4.3b - CN¥2.0b) (Based on the trailing twelve months to September 2023).
0.07 = 1.61亿元人民币 ÷(43亿元人民币-2.0亿元人民币) (基于截至2023年9月的过去十二个月)。
Thus, Jiangsu Sunshine has an ROCE of 7.0%. On its own that's a low return, but compared to the average of 5.1% generated by the Luxury industry, it's much better.
因此,江苏阳光的投资回报率为7.0%。这本身就是一个很低的回报,但与奢侈品行业平均5.1%的回报率相比,要好得多。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240202/0-cad3fcc25d6b1056bf1ac0ea7a9a01cc-0-56891e1eb24b67bb59c0bac6785bc29c.png/big)
Historical performance is a great place to start when researching a stock so above you can see the gauge for Jiangsu Sunshine's ROCE against it's prior returns. If you want to delve into the historical earnings, revenue and cash flow of Jiangsu Sunshine, check out these free graphs here.
历史表现是研究股票的绝佳起点,因此在上方您可以看到江苏阳光的投资回报率与先前回报率的对比。如果您想深入了解江苏阳光的历史收益、收入和现金流,请在此处查看这些免费图表。
What Can We Tell From Jiangsu Sunshine's ROCE Trend?
我们可以从江苏阳光的ROCE趋势中得出什么?
There is reason to be cautious about Jiangsu Sunshine, given the returns are trending downwards. Unfortunately the returns on capital have diminished from the 9.9% that they were earning five years ago. And on the capital employed front, the business is utilizing roughly the same amount of capital as it was back then. Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition. If these trends continue, we wouldn't expect Jiangsu Sunshine to turn into a multi-bagger.
鉴于回报率呈下降趋势,有理由对江苏阳光持谨慎态度。不幸的是,资本回报率已从五年前的9.9%有所下降。在资本使用方面,该企业使用的资本量与当时大致相同。表现出这些属性的公司往往不会萎缩,但它们可能已经成熟,面临竞争对利润的压力。如果这些趋势继续下去,我们预计江苏阳光不会变成多装袋。
On a separate but related note, it's important to know that Jiangsu Sunshine has a current liabilities to total assets ratio of 47%, which we'd consider pretty high. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower.
另一方面,重要的是要知道江苏阳光的流动负债与总资产的比率为47%,我们认为这个比率相当高。这实际上意味着供应商(或短期债权人)正在为业务的很大一部分提供资金,因此请注意,这可能会带来一些风险因素。虽然这不一定是坏事,但如果这个比率较低,可能会有好处。
The Bottom Line
底线
In summary, it's unfortunate that Jiangsu Sunshine is generating lower returns from the same amount of capital. It should come as no surprise then that the stock has fallen 19% over the last five years, so it looks like investors are recognizing these changes. With underlying trends that aren't great in these areas, we'd consider looking elsewhere.
总而言之,不幸的是,江苏阳光从相同数量的资本中获得的回报较低。因此,该股在过去五年中下跌了19%也就不足为奇了,因此投资者似乎已经意识到了这些变化。由于这些领域的潜在趋势并不理想,我们会考虑将目光投向其他地方。
Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 4 warning signs for Jiangsu Sunshine (of which 2 shouldn't be ignored!) that you should know about.
由于几乎每家公司都面临一些风险,因此值得了解它们是什么,我们已经发现了江苏阳光的4个警告标志(其中2个不容忽视!)你应该知道的。
While Jiangsu Sunshine may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
尽管江苏阳光目前可能无法获得最高的回报,但我们编制了一份目前股本回报率超过25%的公司名单。在这里查看这个免费清单。
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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。