Should Qingdao Huijintong Power Equipment Co.,Ltd. (SHSE:603577) Focus On Improving This Fundamental Metric?
Should Qingdao Huijintong Power Equipment Co.,Ltd. (SHSE:603577) 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. To keep the lesson grounded in practicality, we'll use ROE to better understand Qingdao Huijintong Power Equipment Co.,Ltd. (SHSE:603577).
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。爲了使課程以實用爲基礎,我們將使用ROE來更好地了解青島匯金通電力設備有限公司。, Ltd.(上海證券交易所股票代碼:603577)。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. 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,它用於評估公司相對於其股權資本的盈利能力。
See our latest analysis for Qingdao Huijintong Power EquipmentLtd
查看我們對青島匯金通電力設備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?
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 Qingdao Huijintong Power EquipmentLtd is:
因此,根據上述公式,青島匯金通電力設備有限公司的投資回報率爲:
1.9% = CN¥34m ÷ CN¥1.8b (Based on the trailing twelve months to September 2023).
1.9% = 3,400萬元人民幣 ÷ 18億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.02 in profit.
“回報” 是指公司去年的收益。這意味着,公司每獲得價值1元人民幣的股東權益,就會產生0.02元的利潤。
Does Qingdao Huijintong Power EquipmentLtd Have A Good ROE?
青島匯金通電力設備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. If you look at the image below, you can see Qingdao Huijintong Power EquipmentLtd has a lower ROE than the average (7.0%) in the Metals and Mining industry classification.
通過將公司的投資回報率與其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,這種方法僅在粗略檢查時有用,因爲各公司在相同的行業分類中確實存在很大差異。如果你看下圖,你可以看到青島匯金通電力設備有限公司的投資回報率低於金屬和採礦行業分類中的平均水平(7.0%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240201/0-d8bafa222fe1b1ba74a6dd3e53b33a24-0-3b4584bcb772878cfd340ba84ef78267.png/big)
Unfortunately, that's sub-optimal. 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 5 risks we have identified for Qingdao Huijintong Power EquipmentLtd visit our risks dashboard for free.
不幸的是,這並不理想。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。要了解我們爲青島匯金通電力設備有限公司確定的5種風險,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 retained earnings, issuing new shares (equity), 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. 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。在第一和第二種情況下,投資回報率將反映現金用於企業投資的情況。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。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。
Combining Qingdao Huijintong Power EquipmentLtd's Debt And Its 1.9% Return On Equity
合併青島匯金通電力設備有限公司的債務及其1.9%的股本回報率
Qingdao Huijintong Power EquipmentLtd does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.37. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
青島匯金通電力設備有限公司確實使用大量債務來增加回報。它的負債權益比率爲1.37。由於投資回報率相當低,而且債務使用量很大,目前很難對這項業務感到興奮。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豐厚的回報。
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 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。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。如果兩家公司的債務與股權比率大致相同,而一家公司的投資回報率更高,那麼我通常更喜歡投資回報率更高的那家公司。
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. Check the past profit growth by Qingdao Huijintong Power EquipmentLtd by looking at this visualization of past earnings, revenue and cash flow.
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。利潤增長率與股票價格所反映的預期相比,是一個特別重要的考慮因素。通過查看過去收益、收入和現金流的可視化,查看青島匯金通電力設備有限公司過去的利潤增長情況。
Of course Qingdao Huijintong Power EquipmentLtd 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,青島匯金通電力設備有限公司可能不是最好的買入股票。因此,您不妨免費查看其他投資回報率高、負債率低的公司的名單。
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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。