What Edison International's (NYSE:EIX) ROE Can Tell Us
What Edison International's (NYSE:EIX) ROE Can Tell Us
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. We'll use ROE to examine Edison International (NYSE:EIX), by way of a worked example.
儘管一些投資者已經精通財務指標(帽子提示),但本文適合那些想了解股本回報率(ROE)及其重要性的人。我們將使用ROE來研究愛迪生國際(紐約證券交易所代碼:EIX),舉一個實例。
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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵指標。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。
See our latest analysis for Edison International
查看我們對愛迪生國際的最新分析
How Do You Calculate Return On Equity?
你如何計算股本回報率?
The formula for return on equity is:
股本回報率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for Edison International is:
因此,根據上述公式,愛迪生國際的投資回報率爲:
7.0% = US$1.2b ÷ US$18b (Based on the trailing twelve months to September 2023).
7.0% = 12億美元 ¥180 億美元(基於截至 2023 年 9 月的過去十二個月)。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.07 in profit.
“回報” 是企業去年獲得的收入。將其概念化的一種方法是,每持有1美元的股東資本,公司就會獲得0.07美元的利潤。
Does Edison International Have A Good Return On Equity?
愛迪生國際的股本回報率是否良好?
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. The image below shows that Edison International has an ROE that is roughly in line with the Electric Utilities industry average (8.3%).
可以說,評估公司投資回報率的最簡單方法是將其與行業平均水平進行比較。重要的是,這遠非一個完美的衡量標準,因爲在同一行業分類中,公司差異很大。下圖顯示,愛迪生國際的投資回報率與電力公用事業行業的平均水平(8.3%)大致持平。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231206/0-97046cdf2b943decb848bbf401aefbc1-0-9094050a59314ccdf4818f4482cbad9e.png/big)
That's neither particularly good, nor bad. While at least the ROE is not lower than the industry, its still worth checking what role the company's debt plays as high debt levels relative to equity may also make the ROE appear high. If so, this increases its exposure to financial risk. You can see the 3 risks we have identified for Edison International by visiting our risks dashboard for free on our platform here.
這既不是特別好,也不是壞事。儘管至少投資回報率不低於該行業,但仍然值得檢查該公司的債務起什麼作用,因爲相對於股本的高債務水平也可能使投資回報率顯得很高。如果是這樣,則會增加其財務風險敞口。您可以訪問我們的 Edison International 了解我們爲愛迪生國際確定的三大風險 風險儀表板 在我們的平台上免費使用。
How Does Debt Impact ROE?
債務如何影響投資回報率?
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 first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
公司通常需要投資資金來增加利潤。這筆現金可以來自留存收益、發行新股(股權)或債務。在前兩種情況下,ROE將反映這種資本的使用來實現增長。在後一種情況下,用於增長的債務將提高回報,但不會影響總權益。這將使投資回報率看起來比不使用債務時要好。
Edison International's Debt And Its 7.0% ROE
愛迪生國際的債務及其7.0%的投資回報率
It's worth noting the high use of debt by Edison International, leading to its debt to equity ratio of 1.91. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
值得注意的是,愛迪生國際大量使用債務,使其債務權益比率爲1.91。即使使用了大量債務,它的投資回報率也相當低;在我們看來,這不是一個好結果。債務會增加風險,減少公司未來的選擇,因此您通常希望從使用債務中獲得一些豐厚的回報。
Conclusion
結論
Return on equity is one way we can compare its business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
股本回報率是我們可以比較不同公司的業務質量的一種方式。能夠在不負債過多的情況下獲得高股本回報的公司通常質量很好。在其他條件相同的情況下,更高的投資回報率更好。
But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.
但是,當企業質量很高時,市場通常會以反映這一點的價格出價。重要的是要考慮其他因素,例如未來的利潤增長,以及未來需要多少投資。因此,你可能想看看這張數據豐富的公司預測交互式圖表。
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.
如果你更願意去另一家公司——一家財務狀況可能優越的公司——那麼千萬不要錯過這份免費的股本回報率高、債務低的有趣公司的名單。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。