With A 1.6% Return On Equity, Is Jiangsu Eastern Shenghong Co.,Ltd. (SZSE:000301) A Quality Stock?
With A 1.6% Return On Equity, Is Jiangsu Eastern Shenghong Co.,Ltd. (SZSE:000301) A Quality Stock?
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 Jiangsu Eastern Shenghong Co.,Ltd. (SZSE:000301).
我們能做的最好的投資之一就是我們自己的知識和技能。考慮到這一點，本文將討論如何使用股本回報率(ROE)來更好地瞭解企業。通過邊做邊學的方式，我們將看到淨資產收益率，以更好地瞭解江秀克東方盛宏股份有限公司(深交所：000301)。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
淨資產收益率，即股本回報率，是評估一家公司從股東那裡獲得投資回報的有效程度的有用工具。簡而言之，它是用來評估一家公司相對於其權益資本的盈利能力。
View our latest analysis for Jiangsu Eastern ShenghongLtd
查看我們對江秀克東方盛宏股份有限公司的最新分析
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 Jiangsu Eastern ShenghongLtd is:
因此，根據上述公式，江秀克東方盛宏股份有限公司的淨資產收益率為：
1.6% = CN¥596m ÷ CN¥37b (Based on the trailing twelve months to June 2023).
1.6%=CN元5.96億×CN元370億元(基於截至2023年6月的12個月)。
The 'return' is the income the business earned over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.02 in profit.
“回報”指的是企業在過去一年中獲得的收入。另一種說法是，公司每持有價值1元的股權，就能賺取0.02元的利潤。
Does Jiangsu Eastern ShenghongLtd Have A Good Return On Equity?
江秀克東方盛宏股份有限公司的股本回報率高嗎？
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, Jiangsu Eastern ShenghongLtd has a lower ROE than the average (7.3%) in the Chemicals 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。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。從下圖可以清楚地看到，江秀克東方盛宏股份有限公司的淨資產收益率低於化工行業的平均水準(7.3%)。
That's not what we like to see. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. To know the 5 risks we have identified for Jiangsu Eastern ShenghongLtd visit our risks dashboard for free.
這不是我們希望看到的。話雖如此，低ROE並不總是一件壞事，特別是如果公司的槓桿率較低，因為如果公司承擔更多債務，這仍有改進的空間。考慮到涉及的風險，高債務水準和低ROE的公司是我們希望避免的組合。要了解我們為江秀克東方盛宏股份有限公司確定的5個風險，請免費訪問我們的風險儀錶板。
How Does Debt Impact ROE?
債務對淨資產收益率有何影響？
Virtually all companies need money to invest in the business, to grow 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 use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
幾乎所有的公司都需要資金來投資於業務，以增加利潤。這些現金可以來自發行股票、留存收益或債務。在前兩種情況下，淨資產收益率將抓住這種資本增長的用途。在後一種情況下，債務的使用將提高回報，但不會改變股權。在這種情況下，債務的使用將提高淨資產收益率，即使企業的核心經濟保持不變。
Jiangsu Eastern ShenghongLtd's Debt And Its 1.6% ROE
江秀克東方盛宏股份有限公司的債務及其1.6%的淨資產收益率
It seems that Jiangsu Eastern ShenghongLtd uses a huge volume of debt to fund the business, since it has an extremely high debt to equity ratio of 3.06. The combination of a rather low ROE and high debt to equity is a negative, in our book.
江秀克東方盛宏股份有限公司似乎使用了大量的債務來為這項業務提供資金，因為它的債務與股本比率非常高，為3.06。在我們的書中，相當低的淨資產收益率和高的債務股本比率的組合是負面的。
Conclusion
結論
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
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。能夠在沒有太多債務的情況下實現高股本回報率的公司通常質量良好。如果兩家公司的債務權益比大致相同，而其中一家公司的淨資產收益率更高，我通常會更喜歡淨資產收益率更高的那家公司。
But when a business is high quality, the market often bids it up to a price that reflects this. 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.
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，你可能想查看分析師對該公司預測的免費可視化。
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.
如果你更願意看看另一家公司--一家財務狀況可能更好的公司--那麼不要錯過這一點免費列出了一些有趣的公司，這些公司擁有高股本回報率和低債務。
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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.