Is Ningbo Jifeng Auto Parts Co., Ltd.'s (SHSE:603997) 3.5% ROE Worse Than Average?
Is Ningbo Jifeng Auto Parts Co., Ltd.'s (SHSE:603997) 3.5% 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). We'll use ROE to examine Ningbo Jifeng Auto Parts Co., Ltd. (SHSE:603997), by way of a worked example.
許多投資者仍在學習分析股票時可以有用的各種指標。本文是爲那些想了解ROE的人準備的。我們將採用ROE來檢驗寧波繼峯汽車零部件股份有限公司(SHSE:603997),通過一個實際案例來說明。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東權益回報率ROE是測試公司增值能力和管理股東投資的有效性的指標。更簡單地說,它衡量公司在股東權益中的盈利能力。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
The formula for return on equity is:
權益回報率的計算公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤(從持續經營中獲得)÷ 股東權益
So, based on the above formula, the ROE for Ningbo Jifeng Auto Parts is:
因此,根據上述公式,寧波繼峯汽車零部件的ROE爲:
3.5% = CN¥156m ÷ CN¥4.5b (Based on the trailing twelve months to March 2024).
3.5% = CN¥15600萬 ÷ CN¥45億 (截至2024年3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¥0.03 in profit.
“回報”是年度利潤。換句話說,對於每一元人民幣的股權,公司能夠賺取0.03元人民幣的利潤。
Does Ningbo Jifeng Auto Parts Have A Good ROE?
寧波繼峯汽車零部件的ROE好嗎?
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 Ningbo Jifeng Auto Parts has a lower ROE than the average (8.1%) in the Auto Components industry classification.
其中一種評估公司ROE的最簡單方法是將其與其所在行業的平均值進行比較。但是,這遠非完美的衡量指標,因爲即使在相同的行業分類中,公司的差異也極大。如果您看下面的圖像,就會發現寧波繼峯汽車零部件的ROE低於汽車元件行業分類中的平均值(8.1%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240630/0-2b9cd3680f802b7c3ce32e5c183df5d4-0-caef67539bd2b9f07990e29d77c6547d.png/big)
That certainly isn't ideal. However, a low ROE is not always bad. If the company's debt levels are moderate to low, then there's still a chance that returns can be improved via the use of financial leverage. 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 Ningbo Jifeng Auto Parts.
這顯然不是理想的情況。然而,低ROE並不總是壞事。如果公司的債務水平中等或較低,則仍有通過利用財務槓桿來改善回報的機會。高債務水平和低ROE的公司是我們不喜歡的組合,因爲涉及到風險。我們的風險儀表板應該包含我們爲寧波繼峯汽車零部件確認的2個風險。
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. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
大多數公司需要資金來增加利潤。這種投資資金可以來自前一年的利潤(保留收益),發行新股或借入資金。在前兩種情況下,ROE將捕捉到這種使用資金來發展業務所帶來的增長。在後一種情況下,爲了增長所需的債務將提高回報,但不會影響股東權益。以這種方式使用債務將提高ROE,即使業務的核心經濟狀況保持不變。
Combining Ningbo Jifeng Auto Parts' Debt And Its 3.5% Return On Equity
寧波繼峯汽車零部件的負債和3.5%ROE的結合
Ningbo Jifeng Auto Parts does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.31. The combination of a rather low ROE and significant use of debt is not particularly appealing. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
寧波繼峯汽車零部件確實使用了大量的債務來提高回報。它的資產負債比爲1.31。較低的ROE和大量使用債務的組合並不特別吸引人。投資者應仔細考慮,如果公司無法輕鬆借款,其業績可能會如何,因爲信貸市場確實會隨時間而變化。
Conclusion
結論
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
ROE是評估企業創造利潤並將其歸還給股東的能力的有用指標。如果一家公司沒有負債就能實現高ROE,那麼可以認爲它是一家高質量的公司。其他條件相同,較高的ROE更好。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking this free report on analyst forecasts for the company.
但ROE只是更大謎題的一部分,因爲高質量的企業通常以較高的盈利倍數進行交易。還必須考慮收益增長的預期與當前價格所反映的盈利增長預期之間的相對關係。因此,我認爲查看此公司分析師預測的免費報告可能值得一試。
But note: Ningbo Jifeng Auto Parts 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.
但注意:寧波繼峯汽車零部件可能不是最好的買入股票。因此,請查看這份免費的有ROE高且負債小的有趣公司列表。
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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.
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或電郵 editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
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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