With A 7.9% Return On Equity, Is Guangdong Chant Group Inc. (SZSE:002616) A Quality Stock?
With A 7.9% Return On Equity, Is Guangdong Chant Group Inc. (SZSE:002616) A Quality Stock?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity 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. We'll use ROE to examine Guangdong Chant Group Inc. (SZSE:002616), by way of a worked example.
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。我们将以投资回报率来考察广东长盛集团有限公司（深圳证券交易所：002616），举一个有效的例子。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或投资回报率是用于评估公司管理层利用公司资本效率的关键指标。简而言之，它用于评估公司相对于其股权资本的盈利能力。
How Do You Calculate Return On Equity?
你如何计算股本回报率？
ROE can be calculated by using the formula:
ROE 可以通过以下公式计算：
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 Guangdong Chant Group is:
因此，根据上述公式，广东长安集团的投资回报率为：
7.9% = CN¥208m ÷ CN¥2.6b (Based on the trailing twelve months to September 2023).
7.9% = 2.08亿元人民币 ÷ 26亿元人民币（基于截至2023年9月的过去十二个月）。
The 'return' refers to a company's earnings over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.08 in profit.
“回报” 是指公司去年的收益。这意味着，每持有价值1元人民币的股权，公司就会产生0.08元人民币的利润。
Does Guangdong Chant Group Have A Good ROE?
广东长歌集团的投资回报率好吗？
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Guangdong Chant Group has a lower ROE than the average (11%) in the Consumer Durables industry.
确定公司股本回报率是否不错的一种简单方法是将其与该行业的平均水平进行比较。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。如下图所示，广东长安集团的投资回报率低于耐用消费品行业的平均水平（11％）。
Unfortunately, that's sub-optimal. 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 high debt company having a low ROE is a different story altogether and a risky investment in our books. You can see the 2 risks we have identified for Guangdong Chant Group by visiting our risks dashboard for free on our platform here.
不幸的是，这并不理想。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。投资回报率低的高负债公司完全是另一回事，对我们的账面来说也是一项风险投资。您可以访问我们的 Guondground Chant Group 查看我们为广东长盛集团确定的两种风险 风险仪表板 在我们的平台上免费使用。
The Importance Of Debt To Return On Equity
债务对股本回报率的重要性
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 case of the first and second options, the ROE will reflect this use of cash, for growth. 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.
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。就第一和第二种选择而言，投资回报率将反映出现金的使用情况，以实现增长。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要好。
Combining Guangdong Chant Group's Debt And Its 7.9% Return On Equity
合并广东长安集团的债务及其7.9％的股本回报率
Guangdong Chant Group does use a high amount of debt to increase returns. It has a debt to equity ratio of 2.33. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
广东长安集团确实使用大量债务来增加回报。它的债务权益比率为2.33。由于投资回报率相当低，而且债务使用量很大，目前很难对这项业务感到兴奋。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 a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
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。能够在不负债过多的情况下获得高股本回报的公司通常质量很好。在其他条件相同的情况下，更高的投资回报率更好。
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free this detailed graph of past earnings, revenue and cash flow.
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。利润增长率与股票价格所反映的预期相比，是一个特别重要的考虑因素。因此，我认为可能值得免费查看这张过去收益、收入和现金流的详细图表。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
当然，通过寻找其他地方，你可能会找到一笔不错的投资。因此，来看看这份有趣的公司的免费清单吧。
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