Returns On Capital At Armstrong World Industries (NYSE:AWI) Have Stalled
Returns On Capital At Armstrong World Industries (NYSE:AWI) Have Stalled
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after briefly looking over the numbers, we don't think Armstrong World Industries (NYSE:AWI) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
如果我們想找到潛在的多袋裝貨商,通常有潛在的趨勢可以提供線索。在一個完美的世界中,我們希望看到一家公司向其業務投入更多資本,理想情況下,從這些資本中獲得的回報也在增加。簡而言之,這些類型的企業是複合機器,這意味着他們不斷以更高的回報率對收益進行再投資。但是,在簡短地研究了這些數字之後,我們認爲阿姆斯特朗世界工業公司(紐約證券交易所代碼:AWI)在未來不具備多袋裝貨商的實力,但讓我們來看看爲什麼會這樣。
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. Analysts use this formula to calculate it for Armstrong World Industries:
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)。分析師使用以下公式來計算阿姆斯特朗世界工業的計算公式:
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)
0.17 = US$251m ÷ (US$1.7b - US$195m) (Based on the trailing twelve months to December 2023).
0.17 = 2.51億美元 ÷(17億美元-1.95億美元) (基於截至2023年12月的過去十二個月)。
So, Armstrong World Industries has an ROCE of 17%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Building industry average of 16%.
因此,阿姆斯特朗世界工業的投資回報率爲17%。從絕對值來看,這是一個相當正常的回報,略接近建築行業16%的平均水平。
Above you can see how the current ROCE for Armstrong World Industries compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Armstrong World Industries .
上面你可以看到阿姆斯特朗世界工業當前的投資回報率與其先前的資本回報率相比如何,但從過去可以看出來的只有那麼多。如果您有興趣,可以在我們的免費阿姆斯特朗世界工業分析師報告中查看分析師的預測。
What The Trend Of ROCE Can Tell Us
ROCE 的趨勢能告訴我們什麼
There hasn't been much to report for Armstrong World Industries' returns and its level of capital employed because both metrics have been steady for the past five years. It's not uncommon to see this when looking at a mature and stable business that isn't re-investing its earnings because it has likely passed that phase of the business cycle. So unless we see a substantial change at Armstrong World Industries in terms of ROCE and additional investments being made, we wouldn't hold our breath on it being a multi-bagger.
關於阿姆斯特朗世界工業的回報率及其資本利用水平,沒有太多可報告的,因爲這兩個指標在過去五年中一直保持穩定。在研究一家成熟穩定的企業時,這種情況並不少見,因爲該企業可能已經過了商業週期的這一階段,因此不進行收益再投資。因此,除非我們看到阿姆斯特朗世界工業在投資回報率和額外投資方面發生重大變化,否則我們不會屏住呼吸成爲一家多口袋企業。
One more thing to note, even though ROCE has remained relatively flat over the last five years, the reduction in current liabilities to 12% of total assets, is good to see from a business owner's perspective. Effectively suppliers now fund less of the business, which can lower some elements of risk.
還有一件事需要注意,儘管投資回報率在過去五年中一直保持相對平穩,但從企業主的角度來看,流動負債減少到總資產的12%還是不錯的。實際上,供應商現在減少了對業務的資助,這可以降低某些風險因素。
The Bottom Line On Armstrong World Industries' ROCE
阿姆斯特朗世界工業投資回報率的底線
In a nutshell, Armstrong World Industries has been trudging along with the same returns from the same amount of capital over the last five years. Since the stock has gained an impressive 75% over the last five years, investors must think there's better things to come. However, unless these underlying trends turn more positive, we wouldn't get our hopes up too high.
簡而言之,在過去的五年中,阿姆斯特朗世界工業一直在努力從相同數量的資本中獲得同樣的回報。由於該股在過去五年中上漲了令人印象深刻的75%,因此投資者必須認爲會有更好的事情發生。但是,除非這些潛在趨勢變得更加樂觀,否則我們不會抱太高的希望。
If you want to continue researching Armstrong World Industries, you might be interested to know about the 1 warning sign that our analysis has discovered.
如果你想繼續研究阿姆斯特朗世界工業,你可能有興趣了解我們的分析發現的1個警告信號。
While Armstrong World Industries 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.
儘管阿姆斯特朗世界工業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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