Should We Be Delighted With Xianhe Co.,Ltd.'s (SHSE:603733) ROE Of 11%?
Should We Be Delighted With Xianhe Co.,Ltd.'s (SHSE:603733) ROE Of 11%?
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 Xianhe Co.,Ltd. (SHSE:603733), by way of a worked example.
我们所做的最好的投资之一，是在我们自己的知识和技能方面。有了这个想法，本文将通过一个实例来讲解如何使用净资产收益率（ROE）更好地理解一个企业。我们将以Xianhe科技（SHSE：603733）作为案例，通过ROE来审视它。
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 To Calculate Return On Equity?
如何计算股东权益报酬率？
ROE can be calculated by using the formula:
净资产收益率可以使用以下公式进行计算：
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 XianheLtd is:
因此，根据上述公式，Xianhe Ltd的ROE是：
11% = CN¥815m ÷ CN¥7.6b (Based on the trailing twelve months to March 2024).
11％=CN¥815m÷CN¥7.6b（基于截至2024年3月的过去12个月）。
The 'return' is the amount earned after tax 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¥0.11.
‘收益率’是公司过去12个月税后赚取的收益额。这意味着，对于每股股东投资的1元人民币，该公司会创造0.11元人民币的利润。
Does XianheLtd Have A Good ROE?
Xianhe Ltd的ROE表现如何？
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 you can see in the graphic below, XianheLtd has a higher ROE than the average (5.7%) in the Forestry industry.
通过将公司的ROE与其行业平均水平进行比较，我们可以快速衡量其表现。这种方法的局限性在于，有些公司与其他公司非常不同，即使它们属于相同的行业分类。从下图中可以看出，Xianhe Ltd的ROE高于林业行业的平均水平（5.7%）。
That's clearly a positive. With that said, a high ROE doesn't always indicate high profitability. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. Our risks dashboardshould have the 3 risks we have identified for XianheLtd.
毫无疑问，这是一个积极的表现。但是，高ROE并不总是说明高盈利能力。除了净收入的改变之外，高ROE还可能是相对更高的债务与净资产之比所导致的，这表明存在风险。我们的风险仪表盘应该列出仅对于Xianhe Ltd的3个风险。
How Does Debt Impact Return On Equity?
债务如何影响股东回报率？
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. 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. 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。这些资金可以来自留存收益、发行新股份（股权）或债务。在前两种情况下，ROE将反映出这些资金用于业务投资的情况。在后一种情况下，用于增长的债务将提高回报，但不会影响总股权。这将使ROE看起来比没有使用债务时更好。
XianheLtd's Debt And Its 11% ROE
Xianhe Ltd的债务和其11%的ROE
XianheLtd does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.28. 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.
Xianhe Ltd确实使用了大量债务来提高回报。它的债务股本比为1.28。相对较低的ROE和显著的债务使用并不特别吸引人。投资者应该仔细考虑如果一家公司无法轻易借贷会如何表现，因为信贷市场随时间会发生改变。
Conclusion
结论
Return on equity is one way we can compare its business quality of different companies. 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.
ROE是我们比较不同公司业务质量的一种方法。一般而言，能够在不过度依赖于债务的情况下获得高回报的公司通常是优质的公司。除此之外，其他条件相同，更高的ROE更好。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. 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 check this FREE visualization of analyst forecasts for the company.
话虽如此，ROE是业务质量的一个有用指标，但您还必须考虑一整套因素来确定购买股票的正确价格。因此需要考虑其他因素，如未来的利润增长以及未来需要投入的资金。因此，您可能希望查看本公司的分析师预测的免费可视化。
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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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