Capital Allocation Trends At Zhejiang Mustang BatteryLtd (SHSE:605378) Aren't Ideal
Capital Allocation Trends At Zhejiang Mustang BatteryLtd (SHSE:605378) Aren't Ideal
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after investigating Zhejiang Mustang BatteryLtd (SHSE:605378), we don't think it's current trends fit the mold of a multi-bagger.
寻找具有大幅增长潜力的企业并不容易,但如果我们看几个关键的财务指标,这是可能的。首先,我们想找一个正在成长的 返回 关于已用资本(ROCE),然后除此之外,还不断增加 基础 所用资本的比例。如果你看到这一点,这通常意味着它是一家拥有良好商业模式和大量盈利再投资机会的公司。但是,在调查了浙江野马电池有限公司(SHSE: 605378)之后,我们认为目前的趋势不符合多袋机的模式。
Return On Capital Employed (ROCE): What Is It?
资本使用回报率(ROCE):这是什么?
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. The formula for this calculation on Zhejiang Mustang BatteryLtd is:
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。浙江野马电池有限公司的计算公式为:
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)
0.078 = CN¥98m ÷ (CN¥1.6b - CN¥313m) (Based on the trailing twelve months to September 2023).
0.078 = 9800万元人民币 ÷(16亿元人民币-3.13亿元人民币) (基于截至2023年9月的过去十二个月)。
So, Zhejiang Mustang BatteryLtd has an ROCE of 7.8%. On its own that's a low return, but compared to the average of 4.8% generated by the Household Products industry, it's much better.
因此,浙江野马电池有限公司的投资回报率为7.8%。就其本身而言,回报率很低,但与家居用品行业4.8%的平均回报率相比,要好得多。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240225/0-5f6e655fa11067048341018f27e14860-0-6cf60794e35b2c61e4db51e90e5af5b2.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'd like to look at how Zhejiang Mustang BatteryLtd has performed in the past in other metrics, you can view this free graph of Zhejiang Mustang BatteryLtd's past earnings, revenue and cash flow.
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。如果你想在其他指标中查看浙江野马电池有限公司过去的表现,你可以查看这张浙江野马电池有限公司过去的收益、收入和现金流的免费图表。
What Can We Tell From Zhejiang Mustang BatteryLtd's ROCE Trend?
我们可以从浙江野马电池有限公司的ROCE趋势中得出什么?
On the surface, the trend of ROCE at Zhejiang Mustang BatteryLtd doesn't inspire confidence. Over the last five years, returns on capital have decreased to 7.8% from 24% five years ago. And considering revenue has dropped while employing more capital, we'd be cautious. This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - "less bang for their buck" per se.
从表面上看,浙江野马电池有限公司的ROCE趋势并不能激发信心。在过去五年中,资本回报率从五年前的24%下降到7.8%。考虑到在雇用更多资本的同时收入有所下降,我们会谨慎行事。这可能意味着该企业正在失去其竞争优势或市场份额,因为尽管向风险投资投入了更多的资金,但它产生的回报实际上更低—— “成本效益更低” 本身。
On a related note, Zhejiang Mustang BatteryLtd has decreased its current liabilities to 20% of total assets. So we could link some of this to the decrease in ROCE. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
与此相关的是,浙江野马电池有限公司已将其流动负债减少至总资产的20%。因此,我们可以将其中一些与投资回报率的下降联系起来。更重要的是,这可以降低业务风险的某些方面,因为现在公司的供应商或短期债权人为其运营提供的资金减少了。有人会声称这降低了企业产生投资回报率的效率,因为该公司现在正在用自己的资金为更多的业务提供资金。
The Bottom Line
底线
In summary, we're somewhat concerned by Zhejiang Mustang BatteryLtd's diminishing returns on increasing amounts of capital. Long term shareholders who've owned the stock over the last year have experienced a 20% depreciation in their investment, so it appears the market might not like these trends either. With underlying trends that aren't great in these areas, we'd consider looking elsewhere.
总而言之,我们对浙江野马电池有限公司资本额增加带来的回报减少感到担忧。去年持有该股的长期股东的投资贬值了20%,因此看来市场可能也不喜欢这些趋势。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。
Zhejiang Mustang BatteryLtd does have some risks, we noticed 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
Zhejiang Mustang BatteryLtd 确实存在一些风险,我们注意到了 3 个警告标志(其中一个不太适合我们),我们认为你应该知道。
While Zhejiang Mustang BatteryLtd isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
尽管浙江野马电池有限公司的回报率并不高,但请查看这份免费的股票回报率高、资产负债表稳健的公司名单。
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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。