Is Digital China Group Co., Ltd.'s (SZSE:000034) 13% ROE Better Than Average?
Is Digital China Group Co., Ltd.'s (SZSE:000034) 13% ROE Better Than Average?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Digital China Group Co., Ltd. (SZSE:000034).
許多投資者仍在學習在分析股票時可能有用的各種指標。這篇文章是為那些想了解股本回報率(ROE)的人準備的。為了讓課程立足於實踐,我們將使用淨資產收益率來更好地理解數字中國集團有限公司(深圳證券交易所代碼:000034)。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回報率(ROE)是用來評估公司管理層利用公司資本效率的關鍵指標。換句話說,它揭示了該公司成功地將股東投資轉化為利潤。
Check out our latest analysis for Digital China Group
查看我們對數字中國集團的最新分析
How Is ROE Calculated?
淨資產收益率是如何計算的?
Return on equity can be calculated by using the formula:
股本回報率可使用以下公式計算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率=(持續經營的)淨利潤?股東權益
So, based on the above formula, the ROE for Digital China Group is:
因此,根據上述公式,數位中國集團的淨資產收益率為:
13% = CN¥1.1b ÷ CN¥8.4b (Based on the trailing twelve months to June 2023).
13%=11億元×84億元(基於截至2023年6月的12個月)。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.13.
“回報”就是年度利潤。因此,這意味著股東每投資1元人民幣,公司就會產生0.13元的利潤。
Does Digital China Group Have A Good ROE?
數位中國集團的淨資產收益率好嗎?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As you can see in the graphic below, Digital China Group has a higher ROE than the average (6.3%) in the IT industry.
可以說,評估公司淨資產收益率最簡單的方法是將其與所在行業的平均水準進行比較。重要的是,這遠遠不是一個完美的衡量標準,因為在同一行業分類中,公司的差異很大。如下圖所示,數位中國集團的淨資產收益率高於IT行業平均水準(6.3%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231010/0-cabedb6d6654efb622d79f98b3cd545d-0-1314518e509a2786034788a644e5031c.png/big)
That is a good sign. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . You can see the 4 risks we have identified for Digital China Group by visiting our risks dashboard for free on our platform here.
這是一個好兆頭。然而,請記住,高淨資產收益率並不一定意味著有效的利潤創造。債務在公司資本結構中的比例較高也可能導致較高的淨資產收益率,而較高的債務水準可能是一個巨大的風險。您可以訪問我們的網站查看我們為數字中國集團確定的4個風險風險控制面板在我們的平臺上是免費的。
How Does Debt Impact Return On Equity?
債務對股本回報率有何影響?
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used.
公司通常需要投入資金來增加利潤。這些現金可以來自留存收益、發行新股(股權)或債務。在第一種和第二種選擇的情況下,淨資產收益率將反映現金用於增長的這種情況。在後一種情況下,債務的使用將提高回報,但不會改變股權。這將使淨資產收益率看起來比不使用債務的情況下更好。
Combining Digital China Group's Debt And Its 13% Return On Equity
將數位中國集團的債務及其13%的股本回報率結合起來
It's worth noting the high use of debt by Digital China Group, leading to its debt to equity ratio of 1.74. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
值得注意的是,數位中國集團高度利用債務,導致其債務權益比達到1.74%。它的淨資產收益率相當低,即使使用了大量債務;在我們看來,這不是一個好結果。債務確實會帶來額外的風險,所以只有當一家公司從債務中獲得一些可觀的回報時,它才是真正值得的。
Conclusion
結論
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. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回報率是衡量一家企業產生利潤並將其返還給股東的能力的有用指標。在我們的賬目中,最高質量的公司擁有高股本回報率,儘管債務水準較低。如果兩家公司的淨資產收益率相同,那麼我通常會傾向於債務較少的那一家。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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.
但淨資產收益率只是一個更大的謎題的一部分,因為高質量企業的本益比往往很高。相對於當前價格反映的利潤增長預期,也必須考慮利潤可能增長的速度。因此,你可能想看看這張數據豐富的公司預測互動圖表。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
當然了,如果你把目光投向別處,你可能會發現這是一筆很棒的投資。所以讓我們來看看這個免費有趣的公司名單。
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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.