Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at Guangdong Provincial Expressway Development (SZSE:200429) and its trend of ROCE, we really liked what we saw.
Return On Capital Employed (ROCE): What Is It?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Guangdong Provincial Expressway Development is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.17 = CN¥2.9b ÷ (CN¥20b - CN¥2.5b) (Based on the trailing twelve months to June 2022).
So, Guangdong Provincial Expressway Development has an ROCE of 17%. In absolute terms, that's a satisfactory return, but compared to the Infrastructure industry average of 5.5% it's much better.
Check out our latest analysis for Guangdong Provincial Expressway Development
SZSE:200429 Return on Capital Employed October 26th 2022
In the above chart we have measured Guangdong Provincial Expressway Development's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Guangdong Provincial Expressway Development here for free.
What Can We Tell From Guangdong Provincial Expressway Development's ROCE Trend?
Guangdong Provincial Expressway Development has not disappointed with their ROCE growth. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 64% in that same time. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward.
The Bottom Line On Guangdong Provincial Expressway Development's ROCE
To sum it up, Guangdong Provincial Expressway Development is collecting higher returns from the same amount of capital, and that's impressive. Considering the stock has delivered 16% to its stockholders over the last five years, it may be fair to think that investors aren't fully aware of the promising trends yet. Given that, we'd look further into this stock in case it has more traits that could make it multiply in the long term.
If you'd like to know about the risks facing Guangdong Provincial Expressway Development, we've discovered 1 warning sign that you should be aware of.
While Guangdong Provincial Expressway Development isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
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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.
找到一傢俱有大幅增長潛力的企業並非易事,但如果我們看看幾個關鍵的財務指標,這是可能的。一種常見的方法是嘗試找到一家擁有退貨已使用資本(ROCE)正在增加,同時也在增長金額已動用資本的比例。歸根結底,這表明它是一家正在以越來越高的回報率對利潤進行再投資的企業。所以當我們看着廣東省內高速公路的發展(SZSE:200429)和它的ROCE趨勢,我們真的很喜歡我們看到的。
資本回報率(ROCE):它是什麼?
如果你以前沒有使用過ROCE,它衡量的是一家公司從業務資本中獲得的“回報”(税前利潤)。廣東省高速公路發展的計算公式為:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.17=CN元29億?(CN元200億-CN元25億)(根據截至2022年6月的往績12個月計算).
所以,廣東省高速公路發展的淨資產收益率為17%。就絕對值而言,這是一個令人滿意的回報率,但與基礎設施行業5.5%的平均回報率相比,這要好得多。
查看我們對廣東省高速公路發展的最新分析
深圳證交所:2022年10月26日資本回報率200429
在上面的圖表中,我們比較了廣東省高速公路發展公司之前的淨資產收益率和之前的業績,但可以説,未來更重要。如果你願意,你可以在這裏查看廣東省高速公路發展分析師的預測免費的。
從廣東省高速公路發展的ROCE趨勢中我們可以看出什麼?
廣東省高速公路發展並沒有對他們的ROCE增長感到失望。更具體地説,儘管該公司在過去五年中使用的資本相對持平,但同期ROCE卻攀升了64%。基本上,這項業務從相同數額的資本中產生了更高的回報,這證明瞭公司的效率有所提高。在這方面,情況看起來很好,所以值得探討管理層對未來增長計劃的看法。
廣東省高速公路發展ROCE的底線
總而言之,廣東省高速公路發展從相同的資本中獲得了更高的回報,這是令人印象深刻的。考慮到該股在過去五年中為股東帶來了16%的收益,我們或許可以公平地認為,投資者還沒有完全意識到前景看好。有鑑於此,我們會進一步研究這隻股票,以防它有更多的特徵,使其在長期內成倍增長。
如果你想了解廣東省高速公路發展面臨的風險,我們發現1個警告標誌這一點你應該知道。
雖然廣東省高速公路發展並沒有獲得最高的回報,但看看這個免費資產負債表穩健、股本回報率高的公司名單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。