Can Herc Holdings Inc. (NYSE:HRI) Maintain Its Strong Returns?
Can Herc Holdings Inc. (NYSE:HRI) Maintain Its Strong Returns?
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 Herc Holdings Inc. (NYSE:HRI).
虽然一些投资者已经精通财务指标（致敬），但本文是为那些想了解净资产收益率（ROE）及其重要性的人准备的。 通过实践学习，我们将研究ROE，以更好地了解Herc Holdings Inc.（NYSE：HRI）
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE或股东权益报酬率是一种有用的工具，用于评估一家公司能否有效地利用来自股东的投资产生回报。换句话说，它揭示了公司将股东的投资变成利润的成功程度。
How Is ROE Calculated?
净资产收益率怎么计算？
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 Herc Holdings is:
因此，根据上述公式，Herc Holdings的ROE是：
26% = US$345m ÷ US$1.3b (Based on the trailing twelve months to March 2024).
26％= US $ 345m÷US $ 1.3b（基于截至2024年3月的过去十二个月）。
The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.26 in profit.
“回报”是指公司过去一年的盈利。将其概念化的一种方法是，对于每个$ 1股东资本，公司获得了 $ 0.26的利润。
Does Herc Holdings Have A Good Return On Equity?
Herc Holdings的净资产收益率如何？
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 is clear from the image below, Herc Holdings has a better ROE than the average (17%) in the Trade Distributors industry.
通过将公司的ROE与其行业平均水平进行比较，我们可以快速了解其好坏程度。这种方法的局限性在于，有些公司与其他公司相当不同，即使属于同一行业分类。正如下图所示，Herc Holdings的ROE优于Trade Distributors行业的平均水平（17％）。
That is a good sign. Bear in mind, a high ROE doesn't always mean superior financial performance. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. You can see the 3 risks we have identified for Herc Holdings by visiting our risks dashboard for free on our platform here.
这是一个好迹象。请记住，高净资产收益率并不总是意味着出色的财务表现。除了净收入的变化外，高净资产收益率也可以是相对于股权的高额债务的结果，这表明了风险。您可以通过访问我们的网站查看我们为Herc Holdings确定的3项风险。风险仪表板在浏览完所有相关因素确定股票购买价格后，ROE是一个有用的公司质量指标。此外，还需要考虑其他因素，例如未来盈利增长以及未来需要投入多少投资。因此，我认为值得查看这份免费的详细收益、营收和现金流图表。
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 two cases, the ROE will capture this use of capital to grow. 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.
大多数公司需要资金——从某个地方——来增加利润。投资资金可以来自于前年的利润（保留收益），发行新股或借款。在前两种情况下，ROE将捕捉到这种使用资本来增长的情况。在后一种情况下，用于增长的债务将提高回报，但不会影响股东权益。因此，债务的使用可以改善ROE，尽管在恶劣的天气情况下会带来额外的风险（比喻而来）.
Herc Holdings' Debt And Its 26% ROE
Herc Holdings显然使用了大量的债务来提高回报，因为它的债务资本比例为2.91。其ROE相当令人印象深刻，但如果不使用债务，它可能会更低。债务确实带来额外的风险，因此只有在公司从中获得了一些不错的回报时才真正值得投入。
Herc Holdings clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 2.91. Its ROE is pretty impressive but, it would have probably been lower without the use of debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
但请注意：Herc Holdings可能并不是最好的股票。因此，请查看此免费的有高ROE和低债务的有趣公司列表。
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 around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
对于比较不同业务质量的公司，ROE很有用。在我们的书中，最高质量的公司具有高ROE，尽管其债务较低。如果两家公司的债务与股本比例大致相同，并且其中一家公司的ROE更高，我通常更喜欢ROE更高的那家公司。
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 I think it may be worth checking this free report on analyst forecasts for the company.
尽管ROE是企业质量的有用指标，但您还需要考虑一系列因素来确定购买股票的正确价格。重要的是要考虑其他因素，例如未来的利润增长以及今后需要多少投资。因此，我认为值得查看有关该公司分析师预测的免费报告。
But note: Herc Holdings 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.
但请注意：Herc Holdings可能不是最好的买入股票。因此，请查看此免费清单，其中包含具有高roe和低债务的有趣公司。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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。或者，发送电子邮件至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。或者发送电子邮件至editorial-team@simplywallst.com。