Is Dana Incorporated's (NYSE:DAN) 2.6% ROE Worse Than Average?
Is Dana Incorporated's (NYSE:DAN) 2.6% ROE Worse Than Average?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Dana Incorporated (NYSE:DAN).
許多投資者仍在學習分析股票時可能有用的各種指標。本文適用於那些想了解股本回報率(ROE)的人。爲了使課程以實用爲基礎,我們將使用投資回報率來更好地了解達納公司(紐約證券交易所代碼:DAN)。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股本回報率或投資回報率是股東需要考慮的重要因素,因爲它可以告訴他們資本再投資的有效性。簡而言之,投資回報率顯示了每美元從其股東投資中產生的利潤。
How To Calculate Return On Equity?
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 Dana is:
因此,根據上述公式,Dana的投資回報率爲:
2.6% = US$48m ÷ US$1.8b (Based on the trailing twelve months to December 2023).
2.6% = 4,800萬美元 ÷ 18億美元(基於截至2023年12月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.03 in profit.
“回報” 是指公司去年的收益。另一種看法是,每持有價值1美元的股權,該公司就能獲得0.03美元的利潤。
Does Dana Have A Good Return On Equity?
達娜的股本回報率高嗎?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see Dana has a lower ROE than the average (12%) in the Auto Components industry classification.
可以說,評估公司投資回報率的最簡單方法是將其與行業平均水平進行比較。重要的是,這遠非一個完美的衡量標準,因爲各公司在相同的行業分類中差異很大。如果你看下圖,你會發現Dana的投資回報率低於汽車零部件行業分類中的平均水平(12%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240314/0-0e2ab4d7767eb56a7a66c27bb7bd06c0-0-1f18cbe675a60e494bd687340f1e0b26.png/big)
That's not what we like to see. 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. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. Our risks dashboard should have the 2 risks we have identified for Dana.
這不是我們喜歡看到的。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。鑑於所涉及的風險,高債務水平和低投資回報率的公司是我們希望避免的組合。我們的風險儀表板應包含我們爲Dana確定的兩種風險。
How Does Debt Impact ROE?
債務如何影響投資回報率?
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, 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 used for growth will improve returns, but won't affect the total 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錢來增加利潤。這些現金可以來自發行股票、留存收益或債務。在第一和第二種情況下,投資回報率將反映出現金投資業務的使用情況。在後一種情況下,用於增長的債務將提高回報,但不會影響總權益。因此,債務的使用可以提高投資回報率,儘管比喻地說,在暴風雨天氣中還會帶來額外的風險。
Dana's Debt And Its 2.6% ROE
達娜的債務及其2.6%的投資回報率
Dana clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.44. 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.
達納顯然使用大量債務來提高回報,因爲其負債權益比率爲1.44。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 useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. 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。能夠在不負債過多的情況下獲得高股本回報的公司通常質量很好。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. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.
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。與股票價格所反映的預期相比,利潤增長率尤其值得考慮。因此,你可能想看看這張數據豐富的公司預測交互式圖表。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
當然,通過尋找其他地方,你可能會找到一筆不錯的投資。因此,來看看這份有趣的公司的免費清單吧。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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。