CEVIA Enviro Inc. (SZSE:000885) Delivered A Better ROE Than Its Industry
CEVIA Enviro Inc. (SZSE:000885) Delivered A Better ROE Than Its Industry
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 CEVIA Enviro Inc. (SZSE:000885), 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。举一个有效的例子,我们将使用投资回报率来考察CEVIA Enviro Inc.(深圳证券交易所代码:000885)。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. 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股东需要考虑的重要因素,因为它可以告诉他们资本再投资的有效性。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 Is ROE Calculated?
ROE 是如何计算的?
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 CEVIA Enviro is:
因此,根据上述公式,CEVIA Enviro的投资回报率为:
14% = CN¥1.2b ÷ CN¥8.3b (Based on the trailing twelve months to September 2023).
14% = 12亿元人民币 ÷ 83亿元人民币(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. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.14 in profit.
“回报” 是过去十二个月的利润。将其概念化的一种方法是,公司每拥有1元人民币的股东资本,公司就会获得0.14元人民币的利润。
Does CEVIA Enviro Have A Good Return On Equity?
CEVIA Enviro有良好的股本回报率吗?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, CEVIA Enviro has a better ROE than the average (7.6%) in the Basic Materials industry.
通过将公司的投资回报率与其行业平均水平进行比较,我们可以快速衡量其表现如何。这种方法的局限性在于,有些公司与其他公司有很大不同,即使在相同的行业分类中也是如此。如下图所示,CEVIA Enviro的投资回报率高于基础材料行业的平均水平(7.6%)。
That's clearly a positive. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. To know the 2 risks we have identified for CEVIA Enviro visit our risks dashboard for free.
这显然是一个积极的方面。但是,请记住,高投资回报率并不一定意味着有效的利润创造。除了净收入的变化外,较高的投资回报率也可能是高债务相对于股本的结果,这表明存在风险。要了解我们为CEVIA Enviro确定的两种风险,请免费访问我们的风险仪表板。
How Does Debt Impact ROE?
债务如何影响投资回报率?
Most companies need money -- from somewhere -- to grow their 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. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
大多数公司需要来自某个地方的资金来增加利润。这笔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,投资回报率将反映现金的这种用途,以实现增长。在后一种情况下,使用债务将提高收益,但不会改变权益。因此,使用债务可以提高投资回报率,尽管可以比喻地说,暴风雨天气会带来额外的风险。
CEVIA Enviro's Debt And Its 14% ROE
CEVIA Enviro的债务及其14%的投资回报率
It's worth noting the high use of debt by CEVIA Enviro, leading to its debt to equity ratio of 1.83. While its ROE is respectable, it is worth keeping in mind that there is usually a limit as to how much debt a company can use. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
值得注意的是,CEVIA Enviro大量使用债务,导致其负债权益比率为1.83。尽管其投资回报率相当可观,但值得记住的是,公司可以使用的债务数量通常是有限制的。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 useful for comparing the quality of different businesses. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回报率对于比较不同业务的质量很有用。在我们的账簿中,尽管债务很低,但质量最高的公司的股本回报率却很高。如果两家公司的投资回报率相同,那么我通常更喜欢负债较少的公司。
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 CEVIA Enviro 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,CEVIA Enviro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。