Is Titan Wind Energy (Suzhou) Co.,Ltd's (SZSE:002531) 11% ROE Better Than Average?
Is Titan Wind Energy (Suzhou) Co.,Ltd's (SZSE:002531) 11% ROE Better Than Average?
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 Titan Wind Energy (Suzhou) Co.,Ltd (SZSE:002531), 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來檢查泰坦風能（蘇州）有限公司。, Ltd (SZSE: 002531)，舉一個實例。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回報率或投資回報率是對公司增值和管理投資者資金的有效性的考驗。簡而言之，它衡量公司相對於股東權益的盈利能力。
See our latest analysis for Titan Wind Energy (Suzhou)Ltd
查看我們對泰坦風能（蘇州）有限公司的最新分析
How Is ROE Calculated?
ROE 是如何計算的？
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算：
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 Titan Wind Energy (Suzhou)Ltd is:
因此，根據上述公式，泰坦風能（蘇州）有限公司的投資回報率爲：
11% = CN¥958m ÷ CN¥8.9b (Based on the trailing twelve months to September 2023).
11% = 9.58億元人民幣 ¥89億元人民幣（基於截至2023年9月的過去十二個月）。
The 'return' is the profit over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.11 in profit.
“回報” 是過去十二個月的利潤。這意味着，每持有價值1元人民幣的股權，公司就會產生0.11元人民幣的利潤。
Does Titan Wind Energy (Suzhou)Ltd Have A Good ROE?
泰坦風能（蘇州）有限公司的投資回報率是否良好？
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 is clear from the image below, Titan Wind Energy (Suzhou)Ltd has a better ROE than the average (7.2%) in the Electrical industry.
通過將公司的投資回報率與行業平均水平進行比較，我們可以快速衡量其表現如何。但是，這種方法只能作爲粗略的檢查才有用，因爲在同一個行業分類中，公司的確存在很大差異。從下圖可以清楚地看出，泰坦風能（蘇州）有限公司的投資回報率高於電氣行業的平均水平（7.2％）。
That's what we like to see. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. To know the 2 risks we have identified for Titan Wind Energy (Suzhou)Ltd visit our risks dashboard for free.
這就是我們喜歡看到的。但是，請記住，高投資回報率並不一定表示可以有效地創造利潤。尤其是當一家公司使用高額債務爲債務融資時，這可能會提高其投資回報率，但高槓杆率卻使公司面臨風險。要了解我們爲泰坦風能（蘇州）有限公司確定的兩大風險，請免費訪問我們的風險儀表板。
How Does Debt Impact Return On Equity?
債務如何影響股本回報率？
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, 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 required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
大多數公司需要來自某個地方的資金來增加利潤。這些現金可能來自發行股票、留存收益或債務。在第一種和第二種情況下，投資回報率將反映這種使用現金投資業務的情況。在後一種情況下，增長所需的債務將提高回報，但不會影響股東權益。這將使投資回報率看起來比不使用債務時的投資回報率要好。
Combining Titan Wind Energy (Suzhou)Ltd's Debt And Its 11% Return On Equity
合併泰坦風能（蘇州）有限公司的債務及其11％的股本回報率
Titan Wind Energy (Suzhou)Ltd clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.14. 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.
泰坦風能（蘇州）有限公司顯然使用大量債務來提高回報，因爲其負債權益比率爲1.14。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 useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
股本回報率對於比較不同業務的質量很有用。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視爲高質量的企業。在其他條件相同的情況下，更高的投資回報率更好。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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.
但是，投資回報率只是更大難題中的一部分，因爲高質量的企業通常以較高的收益倍數進行交易。與股票價格所反映的預期相比，利潤增長率尤其需要考慮。因此，我認爲可能值得查看這份關於分析師對公司的預測的免費報告。
Of course Titan Wind Energy (Suzhou)Ltd may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
當然，泰坦風能（蘇州）有限公司可能不是最值得買入的股票。因此，您可能希望看到這份免費收藏的其他投資回報率高、債務低的公司。
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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。