How Did European Wax Center, Inc.'s (NASDAQ:EWCZ) 14% ROE Fare Against The Industry?
How Did European Wax Center, Inc.'s (NASDAQ:EWCZ) 14% ROE Fare Against The Industry?
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 European Wax Center, Inc. (NASDAQ:EWCZ), by way of a worked example.
許多投資者仍在學習有助於分析股票的各種指標。本文是爲那些想學習股東權益回報率（ROE）的人準備的。我們將使用ROE來以歐洲蠟燭公司（NASDAQ：EWCZ）爲例進行分析。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股東權益回報率（ROE）是檢驗公司增加其價值和管理投資者資金有效性的測試。簡而言之，ROE顯示每個美元的利潤與其股東的投資有關。
How Do You Calculate Return On Equity?
怎樣計算ROE?
Return on equity can be calculated by using the formula:
股東權益報酬率可以使用以下公式計算：
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 European Wax Center is:
因此，按照以上公式，歐洲蠟燭公司的ROE爲：
14% = US$17m ÷ US$120m (Based on the trailing twelve months to April 2024).
14％= US$1700萬 ÷ US$12000萬（截至2024年4月的過去十二個月）。
The 'return' is the income the business earned over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.14 in profit.
所謂“回報率”是公司在過去一年中賺取的收入。這意味着，對於每1美元的股東權益，該公司創造了0.14美元的利潤。
Does European Wax Center Have A Good ROE?
歐洲蠟燭公司具有良好的ROE嗎？
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. The image below shows that European Wax Center has an ROE that is roughly in line with the Consumer Services industry average (14%).
通過將公司的ROE與其所在行業板塊的平均水平進行比較，我們可以快速了解其質量優劣。但是這種方法的侷限是，即使是在同一行業分類中，有些公司也與其他公司非常不同。下圖顯示，歐洲脫毛中心（European Wax Center）的ROE大致與消費服務行業板塊的平均水平（14%）相當。
So while the ROE is not exceptional, at least its acceptable. 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 so, this increases its exposure to financial risk. Our risks dashboardshould have the 2 risks we have identified for European Wax Center.
因此，雖然ROE並不是特別出色，但至少是可以接受的。儘管ROE至少不低於行業平均水平，但仍值得檢查公司的債務在其中扮演了什麼角色，因爲相對於股本來說，高負債水平可能也會使ROE看起來更高。如果確實如此，則會增加其金融風險敞口。我們的風險儀表板應該顯示出我們已經爲歐洲蠟燭公司確定的2種風險。
How Does Debt Impact Return On Equity?
債務如何影響股東回報率？
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
大多數公司需要資金來增長其利潤。這些資金可以來自留存收益、發行新股（股權）或債務。在第一種和第二種情況下，ROE將反映出這種用於業務投資的現金使用情況。而在後一種情況下，爲實現增長所需的債務將提高回報率，但不會影響股東權益。這會使ROE看起來比不使用債務要好。
European Wax Center's Debt And Its 14% ROE
歐洲蠟燭公司的債務及其14％的ROE
It seems that European Wax Center uses a huge volume of debt to fund the business, since it has an extremely high debt to equity ratio of 3.13. Its ROE is pretty good, but given the impact of the debt, we're less than enthused, overall.
似乎歐洲蠟燭公司使用大量債務來資助業務，因爲其極高的負債股本比率爲3.13倍。雖然ROE相當不錯，但考慮到債務的影響，我們總體上不是很滿意。
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 one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt.
淨資產收益率是比較不同公司業務質量的一種方法。可以認爲，不借債就能實現高淨資產收益率的公司是高品質的公司。如果兩個公司的淨資產收益率相同，則我通常更喜歡負債較少的公司。
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. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company.
話雖如此，雖然ROE是業務質量的有用指標，但您需要研究各種因素來確定購買股票的正確價格。利潤增長速度與反映在股票價格中的預期是特別重要的考慮因素。因此，我認爲值得查看該公司分析師預測的免費報告。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
當然，您也可能通過尋找其他地方來找到出色的投資。因此，不妨查看這個有趣公司的免費列表。
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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。