Based On Its ROE, Is Viavi Solutions Inc. (NASDAQ:VIAV) A High Quality Stock?
Based On Its ROE, Is Viavi Solutions Inc. (NASDAQ:VIAV) A High Quality Stock?
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 Viavi Solutions Inc. (NASDAQ:VIAV), 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维亚维解决方案公司(纳斯达克股票代码:VIAV),举一个有效的例子。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
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。换句话说,它揭示了公司成功地将股东投资转化为利润。
How To Calculate Return On Equity?
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 Viavi Solutions is:
因此,根据上述公式,Viavi 解决方案的投资回报率为:
0.7% = US$5.0m ÷ US$728m (Based on the trailing twelve months to December 2023).
0.7% = 500万美元 ÷ 7.28亿美元(基于截至2023年12月的过去十二个月)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.01 in profit.
“回报” 是过去十二个月的税后收入。另一种思考方式是,每持有价值1美元的股权,该公司就能获得0.01美元的利润。
Does Viavi Solutions Have A Good ROE?
Viavi Solutions 的投资回报率是否良好?
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, Viavi Solutions has a lower ROE than the average (8.8%) in the Communications 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。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。如下图所示,Viavi Solutions的投资回报率低于通信行业的平均水平(8.8%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240306/0-b1422c873432a0ce2f75cd8ce398bcc5-0-480722b0cac9c9777e3526e812b8dbe5.png/big)
Unfortunately, that's sub-optimal. However, a low ROE is not always bad. If the company's debt levels are moderate to low, then there's still a chance that returns can be improved via the use of financial leverage. 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 Viavi Solutions visit our risks dashboard for free.
不幸的是,这并不理想。但是,低投资回报率并不总是坏事。如果公司的债务水平处于中等至低水平,那么仍然有可能通过使用财务杠杆来提高回报。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 Viavi Solutions 确定的两种风险,请免费访问我们的风险控制面板。
Why You Should Consider Debt When Looking At ROE
为什么在考虑投资回报率时应该考虑债务
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
大多数公司需要来自某个地方的资金来增加利润。这些现金可以来自留存收益、发行新股(股权)或债务。在前两个案例中,投资回报率将涵盖这种资本用于增长的用途。在后一种情况下,用于增长的债务将提高回报,但不会影响总资产。以这种方式,债务的使用将提高投资回报率,尽管该业务的核心经济学保持不变。
Combining Viavi Solutions' Debt And Its 0.7% Return On Equity
合并 Viavi Solutions 的债务及其 0.7% 的股本回报率
It's worth noting the high use of debt by Viavi Solutions, leading to its debt to equity ratio of 1.00. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
值得注意的是,Viavi Solutions大量使用债务,导致其负债权益比率为1.00。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。债务确实会带来额外的风险,因此只有当公司从中获得可观的回报时,债务才是真正值得的。
Conclusion
结论
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. 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。在我们的账簿中,尽管负债较低,但质量最高的公司仍具有很高的股本回报率。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,我通常更喜欢投资回报率更高的公司。
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. 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。还必须考虑利润可能增长的速度,相对于当前价格所反映的利润增长预期。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 Viavi Solutions 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,Viavi Solutions可能不是最值得购买的股票。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。