Jiangsu Sunshine's (SHSE:600220) Returns On Capital Not Reflecting Well On The Business
Jiangsu Sunshine's (SHSE:600220) Returns On Capital Not Reflecting Well On The Business
If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time? When we see a declining return on capital employed (ROCE) in conjunction with a declining base of capital employed, that's often how a mature business shows signs of aging. Basically the company is earning less on its investments and it is also reducing its total assets. On that note, looking into Jiangsu Sunshine (SHSE:600220), we weren't too upbeat about how things were going.
如果我們想避開一家衰退的企業,那麼有哪些趨勢可以提前警告我們?當我們看到下降時 返回 在資本使用率(ROCE)的下降的同時 基礎 就所使用的資本而言,成熟的企業通常會以這種方式顯示出老化的跡象。基本上,該公司的投資收入減少了,而且總資產也在減少。從這個角度來看,縱觀江蘇陽光(SHSE: 600220),我們對事情的發展並不太樂觀。
Return On Capital Employed (ROCE): What Is It?
資本使用回報率(ROCE):這是什麼?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Jiangsu Sunshine is:
如果你以前沒有與ROCE合作過,它會衡量公司從其業務中使用的資本中產生的 “回報”(稅前利潤)。在江蘇陽光上進行此計算的公式爲:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已動用資本回報率 = 息稅前收益 (EBIT) ¥(總資產-流動負債)
0.07 = CN¥161m ÷ (CN¥4.3b - CN¥2.0b) (Based on the trailing twelve months to September 2023).
0.07 = 1.61億元人民幣 ÷(43億元人民幣-2.0億元人民幣) (基於截至2023年9月的過去十二個月)。
Thus, Jiangsu Sunshine has an ROCE of 7.0%. On its own that's a low return, but compared to the average of 5.1% generated by the Luxury industry, it's much better.
因此,江蘇陽光的投資回報率爲7.0%。這本身就是一個很低的回報,但與奢侈品行業平均5.1%的回報率相比,要好得多。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240202/0-cad3fcc25d6b1056bf1ac0ea7a9a01cc-0-56891e1eb24b67bb59c0bac6785bc29c.png/big)
Historical performance is a great place to start when researching a stock so above you can see the gauge for Jiangsu Sunshine's ROCE against it's prior returns. If you want to delve into the historical earnings, revenue and cash flow of Jiangsu Sunshine, check out these free graphs here.
歷史表現是研究股票的絕佳起點,因此在上方您可以看到江蘇陽光的投資回報率與先前回報率的對比。如果您想深入了解江蘇陽光的歷史收益、收入和現金流,請在此處查看這些免費圖表。
What Can We Tell From Jiangsu Sunshine's ROCE Trend?
我們可以從江蘇陽光的ROCE趨勢中得出什麼?
There is reason to be cautious about Jiangsu Sunshine, given the returns are trending downwards. Unfortunately the returns on capital have diminished from the 9.9% that they were earning five years ago. And on the capital employed front, the business is utilizing roughly the same amount of capital as it was back then. Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition. If these trends continue, we wouldn't expect Jiangsu Sunshine to turn into a multi-bagger.
鑑於回報率呈下降趨勢,有理由對江蘇陽光持謹慎態度。不幸的是,資本回報率已從五年前的9.9%有所下降。在資本使用方面,該企業使用的資本量與當時大致相同。表現出這些屬性的公司往往不會萎縮,但它們可能已經成熟,面臨競爭對利潤的壓力。如果這些趨勢繼續下去,我們預計江蘇陽光不會變成多裝袋。
On a separate but related note, it's important to know that Jiangsu Sunshine has a current liabilities to total assets ratio of 47%, which we'd consider pretty high. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower.
另一方面,重要的是要知道江蘇陽光的流動負債與總資產的比率爲47%,我們認爲這個比率相當高。這實際上意味着供應商(或短期債權人)正在爲業務的很大一部分提供資金,因此請注意,這可能會帶來一些風險因素。雖然這不一定是壞事,但如果這個比率較低,可能會有好處。
The Bottom Line
底線
In summary, it's unfortunate that Jiangsu Sunshine is generating lower returns from the same amount of capital. It should come as no surprise then that the stock has fallen 19% over the last five years, so it looks like investors are recognizing these changes. With underlying trends that aren't great in these areas, we'd consider looking elsewhere.
總而言之,不幸的是,江蘇陽光從相同數量的資本中獲得的回報較低。因此,該股在過去五年中下跌了19%也就不足爲奇了,因此投資者似乎已經意識到了這些變化。由於這些領域的潛在趨勢並不理想,我們會考慮將目光投向其他地方。
Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 4 warning signs for Jiangsu Sunshine (of which 2 shouldn't be ignored!) that you should know about.
由於幾乎每家公司都面臨一些風險,因此值得了解它們是什麼,我們已經發現了江蘇陽光的4個警告標誌(其中2個不容忽視!)你應該知道的。
While Jiangsu Sunshine may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
儘管江蘇陽光目前可能無法獲得最高的回報,但我們編制了一份目前股本回報率超過25%的公司名單。在這裏查看這個免費清單。
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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。