Is Trina Solar Co., Ltd.'s (SHSE:688599) 11% ROE Better Than Average?
Is Trina Solar Co., Ltd.'s (SHSE:688599) 11% ROE Better Than Average?
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. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Trina Solar Co., Ltd. (SHSE:688599).
我们能做的最好的投资之一是我们自己的知识和技能。考虑到这一点，本文将探讨如何使用股本回报率（ROE）来更好地了解业务。通过边干边学的方式，我们将研究投资回报率，以更好地了解天合光能有限公司（SHSE: 688599）。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回报率或投资回报率是股东需要考虑的重要因素，因为它可以告诉他们资本再投资的有效性。换句话说，它揭示了公司成功地将股东投资转化为利润。
How Is ROE Calculated?
ROE 是如何计算的？
The formula for ROE is:
ROE 的公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润（来自持续经营业务）÷ 股东权益
So, based on the above formula, the ROE for Trina Solar is:
因此，根据上述公式，天合光能的投资回报率为：
11% = CN¥4.2b ÷ CN¥37b (Based on the trailing twelve months to March 2024).
11% = 42元人民币 ÷ 370元人民币（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. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.11.
“回报” 是指公司去年的收益。因此，这意味着公司每投资1元人民币，公司就会产生0.11元人民币的利润。
Does Trina Solar Have A Good ROE?
天合光能有良好的投资回报率吗？
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. 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, Trina Solar has a higher ROE than the average (5.8%) in the Semiconductor industry.
确定公司股本回报率是否不错的一种简单方法是将其与该行业的平均水平进行比较。这种方法的局限性在于，有些公司与其他公司有很大不同，即使在相同的行业分类中也是如此。如下图所示，天合光能的投资回报率高于半导体行业的平均水平（5.8％）。
That's clearly a positive. With that said, a high ROE doesn't always indicate high profitability. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. You can see the 3 risks we have identified for Trina Solar by visiting our risks dashboard for free on our platform here.
这显然是积极的。话虽如此，高投资回报率并不总是表示高盈利能力。尤其是当一家公司使用高额债务为其债务融资时，这可能会提高其投资回报率，但高杠杆率会使公司面临风险。您可以通过我们的平台免费访问我们的风险控制面板，查看我们为天合光能确定的三种风险。
Why You Should Consider Debt When Looking At ROE
为什么在考虑投资回报率时应该考虑债务
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. 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. 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。这些现金可以来自发行股票、留存收益或债务。在前两个案例中，投资回报率将涵盖这种资本用于增长的用途。在后一种情况下，增长所需的债务将提高回报，但不会影响股东权益。这将使投资回报率看起来比不使用债务时更好。
Trina Solar's Debt And Its 11% ROE
天合光能的债务及其11％的投资回报率
Trina Solar does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.09. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
天合光能确实使用大量债务来增加回报。它的负债权益比率为1.09。相当低的投资回报率和大量使用债务相结合并不是特别有吸引力。债务确实会带来额外的风险，因此只有当公司从中获得可观的回报时，债务才是真正值得的。
Summary
摘要
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
股本回报率是衡量企业创造利润并将其返还给股东的能力的有用指标。在我们的账簿中，尽管债务很低，但质量最高的公司的股本回报率却很高。在其他条件相同的情况下，更高的投资回报率更好。
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. 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 check this FREE visualization of analyst forecasts for the company.
话虽如此，尽管投资回报率是衡量业务质量的有用指标，但你必须考虑一系列因素才能确定购买股票的正确价格。还必须考虑利润可能增长的速度，相对于当前价格所反映的利润增长预期。因此，您可能需要查看该公司的分析师预测的免费可视化效果。
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
如果你更愿意去另一家公司——一家财务状况可能优越的公司——那么千万不要错过这份免费的股本回报率高、债务低的有趣公司的名单。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论，我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议，也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意，我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之，华尔街没有持有任何上述股票的头寸。
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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