Select Medical Holdings Corporation (NYSE:SEM) Delivered A Better ROE Than Its Industry
Select Medical Holdings Corporation (NYSE:SEM) Delivered A Better ROE Than Its Industry
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. To keep the lesson grounded in practicality, we'll use ROE to better understand Select Medical Holdings Corporation (NYSE:SEM).
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。爲了使本課以實用爲基礎，我們將使用投資回報率來更好地了解精選醫療控股公司（紐約證券交易所代碼：SEM）。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵指標。簡而言之，它衡量公司相對於股東權益的盈利能力。
How Do You Calculate Return On Equity?
你如何計算股本回報率？
The formula for return on equity is:
股本回報率的公式是：
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 Select Medical Holdings is:
因此，根據上述公式，精選醫療控股的投資回報率爲：
20% = US$332m ÷ US$1.7b (Based on the trailing twelve months to March 2024).
20% = 3.32億美元 ÷ 17億美元（基於截至2024年3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 $0.20 in profit.
“回報” 是指公司去年的收益。另一種思考方式是，公司每持有價值1美元的股權，就能獲得0.20美元的利潤。
Does Select Medical Holdings Have A Good Return On Equity?
精選醫療控股有良好的股本回報率嗎？
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. 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, Select Medical Holdings has a better ROE than the average (11%) in the Healthcare industry.
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。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，精選醫療控股的投資回報率高於醫療保健行業的平均水平（11％）。
That is a good sign. With that said, a high ROE doesn't always indicate high profitability. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. To know the 2 risks we have identified for Select Medical Holdings visit our risks dashboard for free.
這是一個好兆頭。話雖如此，高投資回報率並不總是表示高盈利能力。除了淨收入的變化外，較高的投資回報率也可能是高債務相對於股本的結果，這表明存在風險。要了解我們爲精選醫療控股確定的兩種風險，請免費訪問我們的風險儀表板。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), 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. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
大多數公司需要來自某個地方的資金來增加利潤。這些現金可以來自留存收益、發行新股（股權）或債務。在第一和第二種情況下，投資回報率將反映現金用於企業投資的情況。在後一種情況下，用於增長的債務將提高回報，但不會影響總資產。以這種方式，債務的使用將提高投資回報率，儘管該業務的核心經濟學保持不變。
Combining Select Medical Holdings' Debt And Its 20% Return On Equity
合併精選醫療控股公司的債務及其20％的股本回報率
Select Medical Holdings does use a high amount of debt to increase returns. It has a debt to equity ratio of 2.31. While its ROE is respectable, it is worth keeping in mind that there is usually a limit as to how much debt a company can use. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
精選醫療控股公司確實使用大量債務來增加回報。它的債務權益比率爲2.31。儘管其投資回報率可觀，但值得記住的是，公司可以使用多少債務通常是有限制的。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 one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. 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.
股本回報率是我們可以比較不同公司的業務質量的一種方式。能夠在沒有債務的情況下實現高股本回報率的公司可以被視爲高質量的企業。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。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free report on analyst forecasts for the company.
話雖如此，儘管投資回報率是衡量業務質量的有用指標，但您必須考慮一系列因素才能確定購買股票的正確價格。重要的是要考慮其他因素，例如未來的利潤增長以及未來需要多少投資。因此，我認爲可能值得查看這份關於分析師對公司的預測的免費報告。
Of course Select Medical Holdings may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
當然，精選醫療控股可能不是最值得購買的股票。因此，您不妨免費查看其他投資回報率高、負債率低的公司的名單。
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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.
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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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