Is Henan Shenhuo Coal & Power Co.,Ltd's (SZSE:000933) 29% ROE Better Than Average?
Is Henan Shenhuo Coal & Power Co.,Ltd's (SZSE:000933) 29% 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). We'll use ROE to examine Henan Shenhuo Coal & Power Co.,Ltd (SZSE:000933), by way of a worked example.
許多投資者仍在學習分析股票時可能有用的各種指標。本文適用於那些想了解股本回報率(ROE)的人。我們將使用ROE來檢查河南神火煤電有限公司,Ltd(深圳證券交易所代碼:000933),舉一個實例。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回報率或投資回報率是股東需要考慮的重要因素,因爲它可以告訴他們資本再投資的有效性。簡而言之,它用於評估公司相對於其股權資本的盈利能力。
View our latest analysis for Henan Shenhuo Coal & PowerLtd
查看我們對河南神火煤電有限公司的最新分析
How Do You Calculate Return On Equity?
你如何計算股本回報率?
The formula for ROE is:
ROE 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 Henan Shenhuo Coal & PowerLtd is:
因此,根據上述公式,河南神火煤電有限公司的投資回報率爲:
29% = CN¥6.5b ÷ CN¥22b (Based on the trailing twelve months to September 2023).
29% = 65億元人民幣 ¥22億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.29 in profit.
“申報表” 是過去十二個月的稅後收入金額。這意味着,每獲得價值1元人民幣的股東權益,公司就會產生0.29元人民幣的利潤。
Does Henan Shenhuo Coal & PowerLtd Have A Good ROE?
河南神火煤電有限公司的投資回報率是否良好?
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. Pleasingly, Henan Shenhuo Coal & PowerLtd has a superior ROE than the average (7.0%) in the Metals and Mining industry.
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,這遠非完美的衡量標準,因爲同一行業分類中的公司差異很大。令人高興的是,河南神火煤電有限公司的投資回報率高於金屬和採礦業的平均水平(7.0%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231213/0-32d956922929d4ea8a434517cc22b520-0-851c9bb21c3726b1f49ebb1f9b75e39a.png/big)
That's clearly a positive. 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.
這顯然是積極的。但是,請記住,較高的投資回報率並不一定表示有效的利潤產生。尤其是當一家公司使用高額債務爲其債務融資時,這可能會提高其投資回報率,但高槓杆率使公司處於危險之中。
How Does Debt Impact Return On Equity?
債務如何影響股本回報率?
Virtually all companies need money to invest in the business, to grow 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 debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
幾乎所有公司都需要資金來投資業務,以增加利潤。這些現金可能來自留存收益、發行新股(股權)或債務。對於第一和第二種選擇,投資回報率將反映這種對現金增長的使用。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。通過這種方式,儘管企業的核心經濟保持不變,但債務的使用將提高投資回報率。
Combining Henan Shenhuo Coal & PowerLtd's Debt And Its 29% Return On Equity
合併河南神火煤電有限公司的債務及其29%的股本回報率
Henan Shenhuo Coal & PowerLtd clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.20. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. 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.
河南神火煤電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1.20。儘管毫無疑問,其投資回報率令人印象深刻,但如果該公司以較低的債務實現這一目標,我們會給我們留下更深刻的印象。投資者應該仔細考慮如果一家公司無法如此輕易地借款,它會如何表現,因爲信貸市場確實會隨着時間的推移而變化。
Conclusion
結論
Return on equity is useful for comparing the quality of different businesses. 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.
股本回報率對於比較不同業務的質量很有用。在我們的賬簿中,儘管債務很低,但質量最高的公司的股本回報率卻很高。如果兩家公司的投資回報率相同,那麼我通常更喜歡負債較少的公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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 check this FREE visualization of 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高倍的收益進行交易。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,您可能需要查看該公司的分析師預測的免費可視化效果。
Of course Henan Shenhuo Coal & PowerLtd 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,河南神火煤電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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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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。