A Closer Look At CSX Corporation's (NASDAQ:CSX) Impressive ROE
A Closer Look At CSX Corporation's (NASDAQ:CSX) Impressive ROE
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of CSX Corporation (NASDAQ:CSX).
虽然一些投资者已经熟悉了一些财务指标(致敬),但本文是为那些想了解净资产收益率(ROE)及其重要性的人而写的。通过学以致用,我们将通过分析CSX Corporation(纳斯达克:CSX)的ROE来更好地理解它。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股东权益回报率(ROE)是检验公司增加其价值和管理投资者资金有效性的测试。简而言之,ROE显示每个美元的利润与其股东的投资有关。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
The formula for return on equity is:
权益回报率的计算公式是:
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 CSX is:
因此,根据上述公式,CSX的ROE为:
29% = US$3.6b ÷ US$13b (Based on the trailing twelve months to March 2024).
29%= 36亿美元÷ 130亿美元(基于截至2024年3月的过去十二个月)。
The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.29 in profit.
“回报”是企业在过去一年中获得的收入。换句话说,对于每1美元的股本,公司能够获得0.29美元的利润。
Does CSX Have A Good Return On Equity?
CSX净资产收益率好吗?
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, CSX has a better ROE than the average (11%) in the Transportation 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好坏。这种方法的局限性在于,有些公司与同一行业分类中的其他公司相比有很大的不同。从下图中可以清楚地看出,CSX的ROE比运输行业的平均水平(11%)要好。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240701/0-74a587a38f0c6445c7e5c6ae78621352-0-2b83a4916e833c8a7e427c3d7718743b.png/big)
That is a good sign. 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.
这是一个好的迹象。尽管如此,高净资产收益率并不总是表明高盈利能力。除了净利润的变化之外,高净资产收益率也可能是相对于净资产的高负债水平的结果,这表明存在风险。
How Does Debt Impact ROE?
债务对ROE的影响是怎样的?
Virtually all companies need money to invest in the business, to grow 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 required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
几乎所有公司都需要资金投资业务以增加利润。这种投资所需的现金可以来自前一年的利润(留存收益),发行新股或借款。在第一种和第二种情况下,ROE将反映出这种用于业务投资的现金使用情况。在后一种情况下,为了增长所需的债务将提高回报,但不会影响股东权益。因此,债务的使用可以提高ROE,尽管在像暴风雨般的天气情况下也伴随着额外的风险,比喻性地说。
CSX's Debt And Its 29% ROE
CSX的负债及其29%的ROE
CSX clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.48. There's no doubt the ROE is impressive, but it's worth keeping in mind that the metric could have been lower if the company were to reduce its debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
CSX显然使用了大量的债务来提高收益,因为其负债股本比为1.48。毫无疑问,ROE令人印象深刻,但值得记住的是,如果公司减少其债务,则该指标可能会降低。负债确实带来额外的风险,因此只有在公司从中获得可观的回报时才真正值得。
Conclusion
结论
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.
股本回报率在比较不同企业质量时很有用。一家可以在没有债务的情况下实现高股本回报率的公司可以被认为是一家高质量的公司。其他条件相同,股本回报率越高,越好。
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. 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.
尽管ROE是业务质量的一个有用指标,但您必须查看一系列因素,以确定购买股票的正确价格。还必须考虑利润增长的预期速度,相对于反映在当前价格中的利润增长预期。因此,您可能需要查看预测该公司数据的数据丰富的交互式图表。
But note: CSX may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
但需要注意:CSX可能不是最好的股票。因此,浏览此高净资产收益率,低负债的有趣公司的免费列表。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
对本文有反馈?关于内容有所顾虑?直接和我们联系。或电邮 editorial-team (at) simplywallst.com。
这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有反馈?关于内容有所顾虑?直接和我们联系。或者,也可以发送电子邮件至editorial-team@simplywallst.com