Capital Allocation Trends At Suzhou Longway Eletronic Machinery (SZSE:301202) Aren't Ideal
Capital Allocation Trends At Suzhou Longway Eletronic Machinery (SZSE:301202) Aren't Ideal
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after briefly looking over the numbers, we don't think Suzhou Longway Eletronic Machinery (SZSE:301202) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
你知道有些財務指標可以提供可能成倍增長機會的線索嗎？除了其他因素，我們需要看到兩件事：首先，資本運營回報率（ROCE）的增長；其次是公司僱用的資本的擴大。更簡單地說，這些類型的企業是複合機器，這意味着它們正在以越來越高的回報率不斷重新投資其收益。然而，經過簡要查看數據，我們認爲蘇州市龍威電子機械股份有限公司（SZSE:301202）未來不具有成倍增長機會，但是讓我們看看爲什麼這樣。
Return On Capital Employed (ROCE): What Is It?
資本僱用回報率（ROCE）是什麼？
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Suzhou Longway Eletronic Machinery is:
對於那些不確定ROCE是什麼的人，它衡量了公司從其業務資本僱用中能夠產生的稅前利潤數量。對蘇州市龍威電子機械股份有限公司進行這個計算的公式是：
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
資產僱用回報率（ROCE）是指企業利潤，即企業稅前利潤除以企業投入的總資本（負債加股權）。如果ROCE高於企業財務成本的承受能力，那麼企業就會創造出更多的價值。
0.058 = CN¥71m ÷ (CN¥1.5b - CN¥321m) (Based on the trailing twelve months to March 2024).
0.058 = CN¥7100萬 ÷ (CN¥15億 - CN¥321m)（截至2024年3月的過去12個月基礎上計算）。
Therefore, Suzhou Longway Eletronic Machinery has an ROCE of 5.8%. In absolute terms, that's a low return but it's around the Tech industry average of 5.3%.
因此，蘇州市龍威電子機械股份有限公司的ROCE爲5.8%。絕對來說，這是一個較低的回報，但它接近5.3%的科技行業平均水平。
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Suzhou Longway Eletronic Machinery.
雖然過去並不能代表未來，但了解公司歷史表現可以幫助我們，這就是爲什麼我們有上面的圖表。如果您想深入了解歷史收益情況，請查看這些免費的圖表，了解蘇州市龍威電子機械股份有限公司的營收和現金流表現情況。
What Can We Tell From Suzhou Longway Eletronic Machinery's ROCE Trend?
通過蘇州市龍威電子機械股份有限公司的ROCE趨勢我們能學到什麼？
When we looked at the ROCE trend at Suzhou Longway Eletronic Machinery, we didn't gain much confidence. To be more specific, ROCE has fallen from 19% over the last five years. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
當我們看蘇州市龍威電子機械股份有限公司的ROCE趨勢時，我們沒有獲得太多信心。更具體地說，ROCE在過去的五年中已經從19％下降了。但是，考慮到資本僱用和營收均有增長，似乎該公司目前正在追求增長，犧牲了短期回報。如果增加的資本能夠帶來額外的回報，公司和股東將從中受益。
On a related note, Suzhou Longway Eletronic Machinery has decreased its current liabilities to 21% of total assets. That could partly explain why the ROCE has dropped. 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.
此外，蘇州市龍威電子機械股份有限公司將其流動負債降至總資產的21％。這可能在一定程度上解釋了爲什麼ROCE會下降。實際上，這意味着他們的供應商或短期債權人資助了更少的業務，這減少了一些風險因素。一些人會認爲，由於現在用自己的資金支持運營的費用更多了，這會降低公司產生ROCE的效率。
What We Can Learn From Suzhou Longway Eletronic Machinery's ROCE
儘管短期ROCE已經下降，我們發現蘇州市龍威電子機械股份有限公司的營收和資本僱用均有增長，這仍然是一個令人欣喜的趨勢。但是，儘管這些趨勢前景看好，但股票在過去一年中下跌了19％，所以對於精明的投資者來說，這可能是一個機會。因此，我們認爲深入研究這隻股票是值得的。
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Suzhou Longway Eletronic Machinery. However, despite the promising trends, the stock has fallen 19% over the last year, so there might be an opportunity here for astute investors. So we think it'd be worthwhile to look further into this stock given the trends look encouraging.
還有一件事：我們已經發現蘇州市龍威電子機械股份有限公司存在兩個警告信號（其中至少有一個對我們來說並不好），了解這些信號肯定會有所幫助。
One more thing: We've identified 2 warning signs with Suzhou Longway Eletronic Machinery (at least 1 which doesn't sit too well with us) , and understanding these would certainly be useful.
儘管蘇州市龍威電子機械股份有限公司的回報不是最高的，但請查看這個免費的公司清單，這些公司在擁有堅實資產負債表的同時，也獲得了高回報。
While Suzhou Longway Eletronic Machinery isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
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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.
對本文有任何反饋？對內容有任何疑慮？請直接與我們聯繫。或者，發送電子郵件至editorial-team@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
對本文有任何反饋？對內容有任何疑慮？請直接與我們聯繫。或者，發送電子郵件至editorial-team@simplywallst.com。