Capital Allocation Trends At Suzhou Longway Eletronic Machinery (SZSE:301202) Aren't Ideal
Capital Allocation Trends At Suzhou Longway Eletronic Machinery (SZSE:301202) Aren't Ideal
0.058 = CN¥71m ÷ (CN¥1.5b - CN¥321m) Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after briefly looking over the numbers, we don't think Suzhou Longway Eletronic Machinery (SZSE:301202) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
你知道有些财务指标可以提供可能成倍增长机会的线索吗？除了其他因素，我们需要看到两件事：首先，资本运营回报率（ROCE）的增长；其次是公司雇用的资本的扩大。更简单地说，这些类型的企业是复合机器，这意味着它们正在以越来越高的回报率不断重新投资其收益。然而，经过简要查看数据，我们认为苏州市龙威电子机械股份有限公司（SZSE:301202）未来不具有成倍增长机会，但是让我们看看为什么这样。
Return On Capital Employed (ROCE): What Is It?
资本雇用回报率（ROCE）是什么？
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Suzhou Longway Eletronic Machinery is:
对于那些不确定ROCE是什么的人，它衡量了公司从其业务资本雇用中能够产生的税前利润数量。对苏州市龙威电子机械股份有限公司进行这个计算的公式是：
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
资产雇用回报率（ROCE）是指企业利润，即企业税前利润除以企业投入的总资本（负债加股权）。如果ROCE高于企业财务成本的承受能力，那么企业就会创造出更多的价值。
0.058 = CN¥71m ÷ (CN¥1.5b - CN¥321m) (Based on the trailing twelve months to March 2024).
0.058 = CN¥7100万 ÷ (CN¥15亿 - CN¥321m)（截至2024年3月的过去12个月基础上计算）。
Therefore, Suzhou Longway Eletronic Machinery has an ROCE of 5.8%. In absolute terms, that's a low return but it's around the Tech industry average of 5.3%.
因此，苏州市龙威电子机械股份有限公司的ROCE为5.8%。绝对来说，这是一个较低的回报，但它接近5.3%的科技行业平均水平。
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Suzhou Longway Eletronic Machinery.
虽然过去并不能代表未来，但了解公司历史表现可以帮助我们，这就是为什么我们有上面的图表。如果您想深入了解历史收益情况，请查看这些免费的图表，了解苏州市龙威电子机械股份有限公司的营收和现金流表现情况。
What Can We Tell From Suzhou Longway Eletronic Machinery's ROCE Trend?
通过苏州市龙威电子机械股份有限公司的ROCE趋势我们能学到什么？
When we looked at the ROCE trend at Suzhou Longway Eletronic Machinery, we didn't gain much confidence. To be more specific, ROCE has fallen from 19% over the last five years. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
当我们看苏州市龙威电子机械股份有限公司的ROCE趋势时，我们没有获得太多信心。更具体地说，ROCE在过去的五年中已经从19％下降了。但是，考虑到资本雇用和营收均有增长，似乎该公司目前正在追求增长，牺牲了短期回报。如果增加的资本能够带来额外的回报，公司和股东将从中受益。
On a related note, Suzhou Longway Eletronic Machinery has decreased its current liabilities to 21% of total assets. That could partly explain why the ROCE has dropped. Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
此外，苏州市龙威电子机械股份有限公司将其流动负债降至总资产的21％。这可能在一定程度上解释了为什么ROCE会下降。实际上，这意味着他们的供应商或短期债权人资助了更少的业务，这减少了一些风险因素。一些人会认为，由于现在用自己的资金支持运营的费用更多了，这会降低公司产生ROCE的效率。
What We Can Learn From Suzhou Longway Eletronic Machinery's ROCE
尽管短期ROCE已经下降，我们发现苏州市龙威电子机械股份有限公司的营收和资本雇用均有增长，这仍然是一个令人欣喜的趋势。但是，尽管这些趋势前景看好，但股票在过去一年中下跌了19％，所以对于精明的投资者来说，这可能是一个机会。因此，我们认为深入研究这只股票是值得的。
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Suzhou Longway Eletronic Machinery. However, despite the promising trends, the stock has fallen 19% over the last year, so there might be an opportunity here for astute investors. So we think it'd be worthwhile to look further into this stock given the trends look encouraging.
还有一件事：我们已经发现苏州市龙威电子机械股份有限公司存在两个警告信号（其中至少有一个对我们来说并不好），了解这些信号肯定会有所帮助。
One more thing: We've identified 2 warning signs with Suzhou Longway Eletronic Machinery (at least 1 which doesn't sit too well with us) , and understanding these would certainly be useful.
尽管苏州市龙威电子机械股份有限公司的回报不是最高的，但请查看这个免费的公司清单，这些公司在拥有坚实资产负债表的同时，也获得了高回报。
While Suzhou Longway Eletronic Machinery isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
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.
对本文有任何反馈？对内容有任何疑虑？请直接与我们联系。或者，发送电子邮件至editorial-team@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
对本文有任何反馈？对内容有任何疑虑？请直接与我们联系。或者，发送电子邮件至editorial-team@simplywallst.com。
