Why WEC Energy Group, Inc. (NYSE:WEC) Looks Like A Quality Company
Why WEC Energy Group, Inc. (NYSE:WEC) Looks Like A Quality Company
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. To keep the lesson grounded in practicality, we'll use ROE to better understand WEC Energy Group, Inc. (NYSE:WEC).
雖然一些投資者已經非常精通財務指標(帽子提示)，但本文面向的是那些想要了解股本回報率(ROE)及其重要性的人。為了使課程立足於實踐，我們將使用淨資產收益率來更好地瞭解WEC能源集團(紐約證券交易所代碼：WEC)。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
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。簡而言之，它衡量的是一家公司相對於股東權益的盈利能力。
Check out our latest analysis for WEC Energy Group
查看我們對WEC能源集團的最新分析
How To Calculate Return On Equity?
如何計算股本回報率？
ROE can be calculated by using the formula:
可使用以下公式計算淨資產收益率：
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 WEC Energy Group is:
因此，根據上述公式，WEC能源集團的淨資產收益率為：
11% = US$1.4b ÷ US$12b (Based on the trailing twelve months to June 2023).
11%=14億美元×120億美元(基於截至2023年6月的12個月的往績)。
The 'return' is the yearly profit. That means that for every $1 worth of shareholders' equity, the company generated $0.11 in profit.
“回報”就是年度利潤。這意味著，股東權益每增加1美元，公司就會產生0.11美元的利潤。
Does WEC Energy Group Have A Good Return On Equity?
WEC能源集團的股本回報率高嗎？
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, WEC Energy Group has a higher ROE than the average (9.1%) in the Integrated Utilities industry.
通過將一家公司的淨資產收益率(ROE)與其行業平均水準進行比較，我們可以快速衡量它有多好。然而，這種方法只是作為一種粗略的檢查，因為在同一行業分類中，公司確實有很大的不同。如下圖所示，WEC能源集團的淨資產收益率高於綜合公用事業行業的平均水準(9.1%)。
That's what we like to see. Bear in mind, a high ROE doesn't always mean superior financial performance. 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 . To know the 2 risks we have identified for WEC Energy Group visit our risks dashboard for free.
這就是我們希望看到的。請記住，高淨資產收益率並不總是意味著更好的財務表現。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。要了解我們為WEC能源集團確定的兩個風險，請免費訪問我們的風險儀錶板。
Why You Should Consider Debt When Looking At ROE
為什麼在考慮淨資產收益率時應該考慮債務
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
大多數公司都需要資金--從某個地方--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。在第一種和第二種情況下，淨資產收益率將反映對企業投資的現金使用情況。在後一種情況下，用於增長的債務將提高回報，但不會影響總股本。因此，債務的使用可以提高淨資產收益率，儘管打個比方說，在暴風雨天氣的情況下會有額外的風險。
Combining WEC Energy Group's Debt And Its 11% Return On Equity
結合WEC能源集團的債務及其11%的股本回報率
WEC Energy Group clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.49. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
WEC能源集團顯然使用了大量的債務來提高回報，因為它的債務與股本比率為1.49。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。投資者應該仔細考慮，如果一家公司不能如此輕鬆地借款，它可能會表現如何，因為信貸市場確實會隨著時間的推移而變化。
Summary
摘要
Return on equity is one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回報率是我們比較不同公司業務質量的一種方式。一家能夠在沒有債務的情況下實現高股本回報率的公司可以被認為是一家高質量的企業。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 when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company.
但當一項業務是高質量的時，市場往往會將其抬高到反映這一點的價格。相對於股價反映的預期，利潤增長率是一個特別重要的考慮因素。所以我覺得這可能值得一查免費分析師對該公司的預測報告.
But note: WEC Energy Group 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.
但請注意：WEC能源集團可能不是最值得買入的股票。所以讓我們來看看這個免費高淨資產收益率和低負債的有趣公司名單。
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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.