Is Xcel Energy Inc.'s (NASDAQ:XEL) 10% ROE Better Than Average?
Is Xcel Energy Inc.'s (NASDAQ:XEL) 10% ROE Better 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 Xcel Energy Inc. (NASDAQ:XEL), by way of a worked example.
很多投資者仍在學習如何分析股票時有哪些指標有用。本文介紹了一些想要了解回報率(ROE)的人。我們將通過實例來使用ROE來檢查Xcel Energy Inc.(NASDAQ:XEL)。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
roe或股東權益回報率是評估公司如何有效地從股東那裏獲得回報的有用工具。簡而言之,它用於評估公司相對於其權益資本的盈利能力。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
The formula for ROE is:
roe的公式是:
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 Xcel Energy is:
因此,根據上述公式,Xcel Energy的ROE爲:
10% = US$1.8b ÷ US$18b (Based on the trailing twelve months to March 2024).
10% = 18億美元 ÷ 180億美元(截至2024年3月的過去12個月)。
The 'return' is the profit over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.10.
“回報”是過去12個月的利潤。這意味着,對於其股東的每1美元投資,公司產生0.10美元的利潤。
Does Xcel Energy Have A Good ROE?
Xcel Energy的ROE好嗎?
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. You can see in the graphic below that Xcel Energy has an ROE that is fairly close to the average for the Electric Utilities industry (8.9%).
確定公司的回報率是否良好的一個簡單方法是將其與所在行業的平均水平進行比較。這種方法的侷限性在於,即使是在同一行業分類中,有些公司也與其他公司相差很大。您可以看到下圖中,Xcel Energy的ROE與電力公用事業行業的平均水平(8.9%)非常接近。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240707/0-767cc06d788418831ab7fe76d59b6dbf-0-f8e6ed4e554dac6456b6c69907e3a0c3.png/big)
That isn't amazing, but it is respectable. While at least the ROE is not lower than the industry, its still worth checking what role the company's debt plays as high debt levels relative to equity may also make the ROE appear high. If a company takes on too much debt, it is at higher risk of defaulting on interest payments. To know the 2 risks we have identified for Xcel Energy visit our risks dashboard for free.
這並不是令人驚訝的結果,但它還是很可觀的。雖然至少ROE不低於行業平均水平,但還是值得看看公司的債務扮演的角色,因爲相對於資產的高債務水平也可能使ROE看起來很高。如果公司承擔過多的債務,就會面臨着高風險違約利息的風險。了解我們爲Xcel Energy確定的兩個風險,請免費訪問我們的風險儀表盤。
How Does Debt Impact Return On Equity?
債務如何影響股東回報率?
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
公司通常需要投資資金來增長其利潤。投資的現金可以來自前年的利潤(留存收益),發行新股或借款。在前兩種情況下,ROE將反映這種用於投資業務的現金使用。在後一種情況下,債務的使用將提高回報率,但不會改變公司的股本。通過這種方式,借款將推動ROE增長,即使業務的基本經濟情況保持不變。
Combining Xcel Energy's Debt And Its 10% Return On Equity
結合Xcel Energy的債務和其10%的ROE
It's worth noting the high use of debt by Xcel Energy, leading to its debt to equity ratio of 1.54. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
值得注意的是,Xcel Energy使用了大量債務,導致其債權與股權比率爲1.54。即使使用了相當多的債務,其ROE仍然很低;在我們看來,這是不好的結果。債務會增加風險並在未來減少公司的選擇,因此您通常希望使用它時獲得一些良好的回報。
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。
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 you might want to check this FREE visualization of analyst forecasts for the company.
話雖如此,ROE是業務質量的一個有用指標,但您還必須考慮一整套因素來確定購買股票的正確價格。因此需要考慮其他因素,如未來的利潤增長以及未來需要投入的資金。因此,您可能希望查看本公司的分析師預測的免費可視化。
Of course Xcel Energy 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,Xcel Energy可能不是最好的股票可供購買。因此,您可能希望查看具有高ROE和低債務的其他公司的免費收藏。
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.
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或者,發送電子郵件至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
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或者發送電子郵件至editorial-team@simplywallst.com。