Can Eternal Asia Supply Chain Management Ltd. (SZSE:002183) Improve Its Returns?
Can Eternal Asia Supply Chain Management Ltd. (SZSE:002183) Improve Its Returns?
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 Eternal Asia Supply Chain Management Ltd. (SZSE:002183), 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怡亞供應鏈管理有限公司(SZSE:002183),舉一個有效的例子。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
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。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。
How To Calculate Return On Equity?
如何計算股本回報率?
ROE can be calculated by using the formula:
ROE 可以通過以下公式計算:
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 Eternal Asia Supply Chain Management is:
因此,根據上述公式,東亞供應鏈管理的投資回報率爲:
1.3% = CN¥135m ÷ CN¥11b (Based on the trailing twelve months to September 2023).
1.3% = 1.35億元人民幣 ÷ 110億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.01 in profit.
“回報” 是每年的利潤。另一種思考方式是,每持有價值1元人民幣的股權,該公司就能獲得0.01元人民幣的利潤。
Does Eternal Asia Supply Chain Management Have A Good Return On Equity?
東亞供應鏈管理有良好的股本回報率嗎?
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. As is clear from the image below, Eternal Asia Supply Chain Management has a lower ROE than the average (6.3%) in the Commercial Services industry.
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。如下圖所示,東亞供應鏈管理的投資回報率低於商業服務行業的平均水平(6.3%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240306/0-47b2e8d99550ba7dc0228a23b8e1f5d7-0-7a32aceceb3692a376fb8c7bf66bbb94.png/big)
That certainly isn't ideal. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high. Our risks dashboard should have the 3 risks we have identified for Eternal Asia Supply Chain Management.
這當然不理想。但是,我們認爲,只要現有債務水平較低,較低的投資回報率仍可能意味着公司有機會通過使用槓桿提高回報。當一家公司的投資回報率低但債務水平高時,我們會謹慎行事,因爲所涉及的風險太高。我們的風險儀表板應包含我們爲Eternal Asia供應鏈管理確定的三種風險。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
Companies usually need to invest money 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 use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
公司通常需要投資以增加利潤。這些現金可以來自留存收益、發行新股(股權)或債務。就第一和第二種選擇而言,投資回報率將反映現金的使用情況,以實現增長。在後一種情況下,債務的使用將提高回報,但不會改變權益。因此,隱喻地說,債務的使用可以提高投資回報率,儘管在暴風雨天氣下還會帶來額外的風險。
Combining Eternal Asia Supply Chain Management's Debt And Its 1.3% Return On Equity
將東亞供應鏈管理的債務及其1.3%的股本回報率合併
Eternal Asia Supply Chain Management does use a high amount of debt to increase returns. It has a debt to equity ratio of 2.22. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
東亞供應鏈管理確實使用大量債務來增加回報。它的債務權益比率爲2.22。即使使用了巨額債務,其投資回報率也相當低;在我們看來,這不是一個好結果。債務確實會帶來額外的風險,因此只有當公司從中獲得可觀的回報時,債務才是真正值得的。
Conclusion
結論
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. 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.
股本回報率是衡量企業創造利潤並將其返還給股東的能力的有用指標。在我們的賬簿中,儘管負債較低,但質量最高的公司仍具有很高的股本回報率。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,我通常更喜歡投資回報率更高的公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free this detailed graph of past earnings, revenue and cash flow.
但是投資回報率只是更大難題的一部分,因爲高質量的企業通常以高倍的收益進行交易。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。因此,我認爲可能值得免費查看這張過去收益、收入和現金流的詳細圖表。
But note: Eternal Asia Supply Chain Management 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:Eternal Asia供應鏈管理可能不是最好的買入股票。因此,來看看這份投資回報率高、債務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。