Capital Allocation Trends At Zhejiang Mustang BatteryLtd (SHSE:605378) Aren't Ideal
Capital Allocation Trends At Zhejiang Mustang BatteryLtd (SHSE:605378) Aren't Ideal
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after investigating Zhejiang Mustang BatteryLtd (SHSE:605378), we don't think it's current trends fit the mold of a multi-bagger.
尋找具有大幅增長潛力的企業並不容易,但如果我們看幾個關鍵的財務指標,這是可能的。首先,我們想找一個正在成長的 返回 關於已用資本(ROCE),然後除此之外,還不斷增加 基礎 所用資本的比例。如果你看到這一點,這通常意味着它是一家擁有良好商業模式和大量盈利再投資機會的公司。但是,在調查了浙江野馬電池有限公司(SHSE: 605378)之後,我們認爲目前的趨勢不符合多袋機的模式。
Return On Capital Employed (ROCE): What Is It?
資本使用回報率(ROCE):這是什麼?
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Zhejiang Mustang BatteryLtd is:
對於那些不確定ROCE是什麼的人,它衡量的是公司從其業務中使用的資本中可以產生的稅前利潤金額。浙江野馬電池有限公司的計算公式爲:
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)
0.078 = CN¥98m ÷ (CN¥1.6b - CN¥313m) (Based on the trailing twelve months to September 2023).
0.078 = 9800萬元人民幣 ÷(16億元人民幣-3.13億元人民幣) (基於截至2023年9月的過去十二個月)。
So, Zhejiang Mustang BatteryLtd has an ROCE of 7.8%. On its own that's a low return, but compared to the average of 4.8% generated by the Household Products industry, it's much better.
因此,浙江野馬電池有限公司的投資回報率爲7.8%。就其本身而言,回報率很低,但與家居用品行業4.8%的平均回報率相比,要好得多。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240225/0-5f6e655fa11067048341018f27e14860-0-6cf60794e35b2c61e4db51e90e5af5b2.png/big)
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Zhejiang Mustang BatteryLtd has performed in the past in other metrics, you can view this free graph of Zhejiang Mustang BatteryLtd's past earnings, revenue and cash flow.
雖然過去並不能代表未來,但了解一家公司的歷史表現可能會有所幫助,這就是我們上面有這張圖表的原因。如果你想在其他指標中查看浙江野馬電池有限公司過去的表現,你可以查看這張浙江野馬電池有限公司過去的收益、收入和現金流的免費圖表。
What Can We Tell From Zhejiang Mustang BatteryLtd's ROCE Trend?
我們可以從浙江野馬電池有限公司的ROCE趨勢中得出什麼?
On the surface, the trend of ROCE at Zhejiang Mustang BatteryLtd doesn't inspire confidence. Over the last five years, returns on capital have decreased to 7.8% from 24% five years ago. And considering revenue has dropped while employing more capital, we'd be cautious. This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - "less bang for their buck" per se.
從表面上看,浙江野馬電池有限公司的ROCE趨勢並不能激發信心。在過去五年中,資本回報率從五年前的24%下降到7.8%。考慮到在僱用更多資本的同時收入有所下降,我們會謹慎行事。這可能意味着該企業正在失去其競爭優勢或市場份額,因爲儘管向風險投資投入了更多的資金,但它產生的回報實際上更低—— “成本效益更低” 本身。
On a related note, Zhejiang Mustang BatteryLtd has decreased its current liabilities to 20% of total assets. So we could link some of this to the decrease in ROCE. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
與此相關的是,浙江野馬電池有限公司已將其流動負債減少至總資產的20%。因此,我們可以將其中一些與投資回報率的下降聯繫起來。更重要的是,這可以降低業務風險的某些方面,因爲現在公司的供應商或短期債權人爲其運營提供的資金減少了。有人會聲稱這降低了企業產生投資回報率的效率,因爲該公司現在正在用自己的資金爲更多的業務提供資金。
The Bottom Line
底線
In summary, we're somewhat concerned by Zhejiang Mustang BatteryLtd's diminishing returns on increasing amounts of capital. Long term shareholders who've owned the stock over the last year have experienced a 20% depreciation in their investment, so it appears the market might not like these trends either. With underlying trends that aren't great in these areas, we'd consider looking elsewhere.
總而言之,我們對浙江野馬電池有限公司資本額增加帶來的回報減少感到擔憂。去年持有該股的長期股東的投資貶值了20%,因此看來市場可能也不喜歡這些趨勢。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。
Zhejiang Mustang BatteryLtd does have some risks, we noticed 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
Zhejiang Mustang BatteryLtd 確實存在一些風險,我們注意到了 3 個警告標誌(其中一個不太適合我們),我們認爲你應該知道。
While Zhejiang Mustang BatteryLtd isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
儘管浙江野馬電池有限公司的回報率並不高,但請查看這份免費的股票回報率高、資產負債表穩健的公司名單。
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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。