Should Portland General Electric Company (NYSE:POR) Focus On Improving This Fundamental Metric?
Should Portland General Electric Company (NYSE:POR) Focus On Improving This Fundamental Metric?
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 Portland General Electric Company (NYSE:POR), 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),但本文適用於那些想了解股本回報率(ROE)及其重要性的人。我們將使用投資回報率來考察波特蘭通用電氣公司(紐約證券交易所代碼:POR),舉一個很好的例子。
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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
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衡量標準。簡而言之,投資回報率顯示了每美元從其股東投資中產生的利潤。
View our latest analysis for Portland General Electric
查看我們對波特蘭通用電氣的最新分析
How Is ROE Calculated?
投資回報率是如何計算的?
ROE can be calculated by using the formula:
ROE 可以通過使用以下公式計算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營)÷ 股東權益
So, based on the above formula, the ROE for Portland General Electric is:
因此,根據上述公式,波特蘭通用電氣的投資回報率爲:
6.4% = US$211m ÷ US$3.3b (Based on the trailing twelve months to September 2023).
6.4% = 2.11億美元 ÷ 33億美元(基於截至2023年9月的過去十二個月)。
The 'return' is the yearly profit. That means that for every $1 worth of shareholders' equity, the company generated $0.06 in profit.
“回報” 是每年的利潤。這意味着,每獲得價值1美元的股東權益,公司就會產生0.06美元的利潤。
Does Portland General Electric Have A Good Return On Equity?
波特蘭通用電氣有良好的股本回報率嗎?
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see Portland General Electric has a lower ROE than the average (8.3%) in the Electric Utilities industry classification.
確定公司股本回報率是否不錯的一種簡單方法是將其與該行業的平均水平進行比較。重要的是,這遠非一個完美的衡量標準,因爲各公司在相同的行業分類中差異很大。如果你看下圖,你會發現波特蘭通用電氣的投資回報率低於電力公用事業行業分類中的平均水平(8.3%)。
That certainly isn't ideal. However, a low ROE is not always bad. If the company's debt levels are moderate to low, then there's still a chance that returns can be improved via the use of financial leverage. A high debt company having a low ROE is a different story altogether and a risky investment in our books. To know the 3 risks we have identified for Portland General Electric visit our risks dashboard for free.
這當然不理想。但是,低投資回報率並不總是壞事。如果公司的債務水平處於中等至低水平,那麼仍然有可能通過使用財務槓桿來提高回報。投資回報率低的高負債公司完全是另一回事,對我們的賬面來說也是一項風險投資。要了解我們爲波特蘭通用電氣確定的三種風險,請免費訪問我們的風險儀表板。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
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 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. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
大多數公司需要來自某個地方的資金來增加利潤。這些現金可以來自留存收益、發行新股(股權)或債務。對於第一和第二種選擇,投資回報率將反映現金用於增長的這種用途。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。因此,使用債務可以提高投資回報率,儘管可以隱喻地說,暴風雨天氣會帶來額外的風險。
Portland General Electric's Debt And Its 6.4% ROE
波特蘭通用電氣的債務及其6.4%的投資回報率
Portland General Electric clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.15. The combination of a rather low ROE and significant use of debt is not particularly appealing. 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.
波特蘭通用電氣顯然使用大量債務來提高回報,因爲其負債權益比率爲1.15。相當低的投資回報率和大量使用債務相結合並不是特別有吸引力。投資者應該仔細考慮如果一家公司無法如此輕易地借款,其表現會如何,因爲信貸市場確實會隨着時間的推移而發生變化。
Summary
摘要
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. 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.
股本回報率對於比較不同業務的質量很有用。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視爲高質量的企業。如果兩家公司的債權與股本水平大致相同,而一家的投資回報率更高,我通常更喜歡投資回報率更高的公司。
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 I think it may be worth checking this free report on analyst 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,我認爲可能值得查看這份關於公司分析師預測的免費報告。
But note: Portland General Electric 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:波特蘭通用電氣可能不是最好的買入股票。因此,來看看這份投資回報率高、負債率低的有趣公司的免費清單。
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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提供基於歷史數據和分析師預測的評論,我們的文章並非旨在提供財務建議。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,我們的分析可能不會考慮最新的價格敏感型公司公告或定性材料。華爾街只是沒有持有上述任何股票的頭寸。