Should We Be Cautious About Yihai Kerry Arawana Holdings Co., Ltd's (SZSE:300999) ROE Of 2.9%?
Should We Be Cautious About Yihai Kerry Arawana Holdings Co., Ltd's (SZSE:300999) ROE Of 2.9%?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Yihai Kerry Arawana Holdings Co., Ltd (SZSE:300999).
当分析一支股票时，许多投资者仍在学习各种有用的指标。本文是为那些想了解股本收益率(roe)的人而编写的。为了使课堂更有现实意义，我们将使用roe来更好地理解金龙鱼(SZSE:300999)。
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ROE是一项用于评估公司管理层如何利用公司资本的效率的关键指标。简而言之，它用于评估公司相对于其股本资本的盈利能力。
How Do You Calculate Return On Equity?
怎样计算ROE?
Return on equity can be calculated by using the formula:
股东权益报酬率可以使用以下公式计算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润（从持续经营中获得）÷ 股东权益
So, based on the above formula, the ROE for Yihai Kerry Arawana Holdings is:
因此，基于上述公式，金龙鱼的roe为:
2.9% = CN¥2.8b ÷ CN¥97b (Based on the trailing twelve months to March 2024).
2.9% = CN¥2.8b ÷ CN¥97b (基于截至2024年3月的过去十二个月)。
The 'return' is the yearly profit. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.03 in profit.
‘收益’是年度利润。这意味着对于每1元股东权益，公司产生0.03元的利润。
Does Yihai Kerry Arawana Holdings Have A Good ROE?
金龙鱼的roe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 shown in the graphic below, Yihai Kerry Arawana Holdings has a lower ROE than the average (8.1%) in the Food industry classification.
判断一家公司的股本收益率是否好，一种简单的方法是将其与所处行业的平均值进行比较。但公司在同一行业分类中存在显著差异，因此这并不是完美的衡量标准。正如下图所示，金龙鱼的roe低于食品行业分类的平均值(8.1%)。
That's not what we like to see. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high.
这不是我们想看到的。虽然我们认为较低的roe仍可能意味着公司有利用杠杆改善其回报的机会，但前提是其现有债务水平较低。当一家公司的roe较低但债务水平较高时，我们会谨慎，因为所涉及的风险太高。
How Does Debt Impact Return On Equity?
债务如何影响股东回报率？
Most companies need money -- from somewhere -- 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 debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
大多数公司需要资金来增加利润。这些投资的资金可以来自前年利润（保留盈余）、发行新股或借贷。在前两种情况下，roe将反映这些用于投资的现金。在后一种情况下，用于增长的债务将提高回报率，但不会影响总股本。因此，债务的使用虽然伴随着风险，但可以提高roe。
Combining Yihai Kerry Arawana Holdings' Debt And Its 2.9% Return On Equity
综合考虑金龙鱼的债务与其2.9%的roe
Yihai Kerry Arawana Holdings clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.14. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
金龙鱼显然使用了大量债务来增加回报，因为其资产负债比为1.14。即使使用了大量债务，它的roe也相当低，这在我们看来并不好。债务增加了风险，同时减少了公司未来的选项，因此您通常希望看到它带来一些高回报。
Summary
总的来说，我们对伟明环保的表现非常满意。具体而言，我们喜欢公司以高回报率再投资了其利润的很大一部分。当然，这导致公司的收益大幅增长。但是，最新的行业分析师预测表明，该公司的收益预计将加速增长。
Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
股本收益率对于比较不同企业的质量很有用。一家无需债务即可实现高roe的公司可以被视为高质量的企业。其他条件相同，较高的roe更好。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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 report on analyst forecasts for the company.
但ROE只是更大难题中的一部分，因为高质量的企业通常在高收益的倍数上进行交易。利润增长率与股票价格所体现的预期相比是特别重要的因素。因此，我认为检查此公司分析师预测的免费报告可能是值得的。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
当然，您也可能通过寻找其他地方来找到出色的投资。因此，不妨查看这个有趣公司的免费列表。
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