Is Qingdao Huicheng Environmental Technology Group Co., Ltd.'s (SZSE:300779) ROE Of 9.5% Impressive?
Is Qingdao Huicheng Environmental Technology Group Co., Ltd.'s (SZSE:300779) ROE Of 9.5% Impressive?
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. We'll use ROE to examine Qingdao Huicheng Environmental Technology Group Co., Ltd. (SZSE:300779), by way of a worked example.
儘管有些投資者已經精通了財務指標(謝意),但本文是爲那些想了解何爲ROE及其重要性的人而寫的。我們將通過實例來用ROE檢驗青島惠城環保科技集團股份有限公司(SZSE:300779)。
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. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
roe或權益回報率是評估公司有效利用股東投資產生回報效率的有用工具。簡而言之,roe顯示每個股東投資所產生的利潤。
How Is ROE Calculated?
淨資產收益率怎麼計算?
ROE can be calculated by using the formula:
淨資產收益率可以使用以下公式進行計算:
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 Qingdao Huicheng Environmental Technology Group is:
因此,根據上述公式,青島惠城環保科技集團的ROE爲:
9.5% = CN¥138m ÷ CN¥1.4b (Based on the trailing twelve months to March 2024).
9.5%=CN¥13800萬 ÷ CN¥ 14億(截至2024年3月的過去12個月)。
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.10 in profit.
“回報”是指公司上一年的收益。另一種思考的方式是,對於每1元人民幣的股權,公司能夠獲得0.10元人民幣的利潤。
Does Qingdao Huicheng Environmental Technology Group Have A Good ROE?
青島惠城環保科技集團擁有良好的ROE嗎?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, Qingdao Huicheng Environmental Technology Group has a higher ROE than the average (5.1%) in the Commercial Services industry.
可以說,評估公司的ROE最簡單的方法是將其與所在行業的平均值進行比較。但該方法的侷限性在於,即使是在同一個行業分類中,有些公司也與其他公司非常不同。如下圖所示,青島惠城環保科技集團的ROE高於商業服務行業的平均水平(5.1%)。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240719/0-a3ceaefcadc06a71c005350c5fda7c2a-0-ea93a8aad46805348e6af8741fc23139.png/big)
That's what we like to see. Bear in mind, a high ROE doesn't always mean superior financial performance. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. To know the 3 risks we have identified for Qingdao Huicheng Environmental Technology Group visit our risks dashboard for free.
這正是我們想看到的。但請記住,高ROE並不總意味着卓越的財務表現。特別是當公司使用大量債務來融資其債務,這可能會提高其ROE,但高槓杆將這家公司置於風險之中。要了解我們已爲青島惠城環保科技集團確定的3個風險,請免費訪問我們的風險信息儀表板。
Why You Should Consider Debt When Looking At ROE
爲什麼在觀察ROE時你應該考慮債務問題?
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 case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
大多數公司需要資金-從某個地方-來增加利潤。投資的資金可以來自往年的利潤(保留收益),發行新股或借款。在前兩種選擇的情況下,roe將反映出這種用於增長的現金。在後一種情況下,用於增長的債務將改善回報,但不會影響股權總額。這將使roe看起來比沒有使用債務時要好。
Qingdao Huicheng Environmental Technology Group's Debt And Its 9.5% ROE
青島惠城環保科技集團的債務和9.5%的ROE
Qingdao Huicheng Environmental Technology Group clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.04. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
青島惠城環保科技集團顯然使用大量的債務來提高回報,因爲其債務與股本比率爲1.04。較低的ROE和顯著的債務使用結合起來並不特別吸引人,因爲債務帶來的風險增加,只有當公司從中獲得一些可觀的回報時,債務才真正具有價值。
Summary
總的來說,我們對偉明環保的表現非常滿意。具體而言,我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然,這導致公司的收益大幅增長。但是,最新的行業分析師預測表明,該公司的收益預計將加速增長。
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回報率有助於比較不同企業的質量。能夠在不太多債務的情況下實現高roe的公司通常都是高質量的。如果兩家公司的roe相同,則我通常更喜歡那家負債較少的公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.
但是,roe只是更重要的謎題的一部分,因爲高品質的企業通常以高倍數的盈利交易。考慮利潤增長率,與股票價格反映的預期相比,尤其重要。因此,您可能想要查看這個數據豐富的交互式預測圖表。
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
如果您想查看另一家可能具有更好財務狀況的公司 - 具有高股本回報率和低債務的公司,那麼請不要錯過這份有趣公司列表,該列表免費提供。
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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?對內容感到擔憂?請直接與我們聯繫。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?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。