Is Baosheng Science and Technology Innovation Co.,Ltd.'s (SHSE:600973) 3.1% ROE Worse Than Average?
Is Baosheng Science and Technology Innovation Co.,Ltd.'s (SHSE:600973) 3.1% ROE Worse Than Average?
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. To keep the lesson grounded in practicality, we'll use ROE to better understand Baosheng Science and Technology Innovation Co.,Ltd. (SHSE:600973).
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。为了使课程以实用为基础,我们将使用ROE来更好地了解宝胜科技创新有限公司。, Ltd.(上海证券交易所股票代码:600973)。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. 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对公司增值和管理投资者资金的有效性的考验。简而言之,它衡量公司相对于股东权益的盈利能力。
How Do You Calculate Return On Equity?
你如何计算股本回报率?
The formula for ROE is:
ROE 的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Baosheng Science and Technology InnovationLtd is:
因此,根据上述公式,宝胜科技创新有限公司的投资回报率为:
3.1% = CN¥156m ÷ CN¥5.0b (Based on the trailing twelve months to September 2023).
3.1% = 1.56亿元人民币 ÷ 50亿元人民币(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. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.03.
“回报” 是过去十二个月的利润。因此,这意味着该公司每投资1元人民币,就会产生0.03元人民币的利润。
Does Baosheng Science and Technology InnovationLtd Have A Good Return On Equity?
宝胜科技创新有限公司的股本回报率是否良好?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see Baosheng Science and Technology InnovationLtd has a lower ROE than the average (7.1%) in the Electrical industry classification.
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。但是,这种方法仅在粗略检查时有用,因为各公司在相同的行业分类中确实存在很大差异。如果你看下图,你可以看到宝胜科技创新有限公司的投资回报率低于电气行业分类中的平均水平(7.1%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240228/0-3c62e09291f3754895b75318d4b3dc6f-0-726f60ac46a92164ca2dd6cba2bd2b95.png/big)
That certainly isn't ideal. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. To know the 2 risks we have identified for Baosheng Science and Technology InnovationLtd visit our risks dashboard for free.
这当然不理想。话虽如此,低投资回报率并不总是一件坏事,尤其是在公司的杠杆率低的情况下,因为如果公司承担更多债务,这仍有改进的余地。鉴于所涉及的风险,高债务水平和低投资回报率的公司是我们希望避免的组合。要了解我们为宝盛科技创新有限公司确定的两种风险,请免费访问我们的风险仪表板。
How Does Debt Impact Return On Equity?
债务如何影响股本回报率?
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. 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.
公司通常需要投资资金来增加利润。投资现金可以来自上一年的利润(留存收益)、发行新股或借款。在第一和第二种情况下,投资回报率将反映现金用于企业投资的这种用途。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 Baosheng Science and Technology InnovationLtd's Debt And Its 3.1% Return On Equity
合并宝盛科技创新有限公司的债务及其3.1%的股本回报率
Baosheng Science and Technology InnovationLtd clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 2.99. The combination of a rather low ROE and significant use of debt is not particularly appealing. 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.
宝胜科技创新有限公司显然使用大量债务来提高回报,因为其负债权益比率为2.99。相当低的投资回报率和大量使用债务相结合并不是特别有吸引力。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。
Conclusion
结论
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. 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。
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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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。