The Returns On Capital At Jiangsu TongLin ElectricLtd (SZSE:301168) Don't Inspire Confidence
The Returns On Capital At Jiangsu TongLin ElectricLtd (SZSE:301168) Don't Inspire Confidence
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. 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. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after briefly looking over the numbers, we don't think Jiangsu TongLin ElectricLtd (SZSE:301168) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
如果你在尋找下一款多袋裝機時不確定從哪裏開始,那麼你應該注意一些關鍵趨勢。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。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,在簡短地查看了這些數字之後,我們認爲江蘇通林電氣有限公司(深圳證券交易所代碼:301168)未來不具備多裝袋機的實力,但讓我們來看看爲什麼會這樣。
Understanding Return On Capital Employed (ROCE)
了解資本使用回報率 (ROCE)
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Jiangsu TongLin ElectricLtd:
對於那些不知道的人來說,ROCE是衡量公司年度稅前利潤(其回報率)的指標,相對於該業務使用的資本。分析師使用這個公式來計算江蘇通林電氣有限公司的利潤:
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)
0.082 = CN¥184m ÷ (CN¥3.4b - CN¥1.1b) (Based on the trailing twelve months to March 2024).
0.082 = 18400萬元人民幣 ÷(34元人民幣-11億元人民幣) (基於截至2024年3月的過去十二個月)。
So, Jiangsu TongLin ElectricLtd has an ROCE of 8.2%. On its own that's a low return, but compared to the average of 6.0% generated by the Electrical industry, it's much better.
因此,江蘇通林電氣有限公司的投資回報率爲8.2%。就其本身而言,回報率很低,但與電氣行業6.0%的平均回報率相比,要好得多。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240626/0-250005b5ec43342051b3305275759d4e-0-91bae7047a47709e5a482dc0f2b1674d.png/big)
Above you can see how the current ROCE for Jiangsu TongLin ElectricLtd compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Jiangsu TongLin ElectricLtd for free.
上面你可以看到江蘇通林電氣有限公司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。如果你願意,你可以免費查看報道江蘇通林電氣有限公司的分析師的預測。
What The Trend Of ROCE Can Tell Us
ROCE 的趨勢能告訴我們什麼
When we looked at the ROCE trend at Jiangsu TongLin ElectricLtd, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 8.2% from 17% five years ago. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
當我們查看江蘇通林電氣股份有限公司的投資回報率趨勢時,我們並沒有獲得太大的信心。在過去五年中,資本回報率從五年前的17%下降到8.2%。儘管考慮到該業務的收入和資產數量都有所增加,但這可能表明該公司正在投資增長,而額外的資本導致了投資回報率的短期下降。而且,如果增加的資本產生額外的回報,那麼從長遠來看,企業乃至股東都將受益。
On a side note, Jiangsu TongLin ElectricLtd has done well to pay down its current liabilities to 34% of total assets. So we could link some of this to the decrease in ROCE. Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
順便說一句,江蘇通林電氣有限公司在償還其流動負債佔總資產的34%方面做得很好。因此,我們可以將其中一些與投資回報率的下降聯繫起來。實際上,這意味着他們的供應商或短期債權人減少了對企業的融資,從而降低了某些風險因素。有人會聲稱這降低了企業產生投資回報的效率,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 Key Takeaway
關鍵要點
In summary, despite lower returns in the short term, we're encouraged to see that Jiangsu TongLin ElectricLtd is reinvesting for growth and has higher sales as a result. And there could be an opportunity here if other metrics look good too, because the stock has declined 57% in the last year. As a result, we'd recommend researching this stock further to uncover what other fundamentals of the business can show us.
總而言之,儘管短期內回報較低,但令我們感到鼓舞的是,江蘇通林電氣有限公司正在進行再投資以實現增長,從而提高了銷售額。如果其他指標也看起來不錯,那麼這裏可能會有機會,因爲該股去年下跌了57%。因此,我們建議進一步研究這隻股票,以發現該業務的其他基本面可以向我們展示什麼。
One more thing to note, we've identified 1 warning sign with Jiangsu TongLin ElectricLtd and understanding this should be part of your investment process.
還有一件事需要注意,我們已經向江蘇通林電氣有限公司確定了一個警告信號,我們知道這應該是您投資過程的一部分。
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
如果你想尋找收益豐厚的穩健公司,可以免費查看這份資產負債表良好且股本回報率可觀的公司名單。
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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
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,發送電子郵件至 editorial-team@simplywallst.com