Why Omnicom Group Inc. (NYSE:OMC) Looks Like A Quality Company
Why Omnicom Group Inc. (NYSE:OMC) Looks Like A Quality Company
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand Omnicom Group Inc. (NYSE:OMC).
投資於自己的知識和技能是最好的投資之一。因此本文將會闡述如何利用ROE更好地理解業務。爲了使課程更加貼近實際，我們將使用ROE更好地理解Omnicom Group Inc. (紐交所: OMC)。
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 Do You Calculate Return On Equity?
怎樣計算ROE?
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 Omnicom Group is:
所以，根據上述公式，宏盟集團的ROE爲：
33% = US$1.5b ÷ US$4.7b (Based on the trailing twelve months to June 2024).
33% = 15億美元 ÷ 47億美元 (基於截至2024年6月的過去十二個月)。
The 'return' is the income the business earned over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.33.
“收益”是企業在過去一年中獲得的收入。因此，這意味着對於每一美元的股東投資，公司能賺取0.33美元的利潤。
Does Omnicom Group Have A Good Return On Equity?
Omnicom Group的ROE是否良好？
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. As is clear from the image below, Omnicom Group has a better ROE than the average (14%) in the Media industry.
確定公司的ROE是否良好的一種簡單方法是將其與行業的平均水平進行比較。此方法的侷限性在於，即使在同一行業分類中，一些公司也可能與其他公司有很大不同。正如下圖所示，Omnicom Group的ROE優於媒體行業的平均水平(14%)。
That is a good sign. Bear in mind, a high ROE doesn't always mean superior financial performance. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk.
這是一個好跡象。請注意，高ROE並不總是意味着出色的財務表現。除了淨利潤的變化之外，高ROE還可能是相對於股本的高債務的結果，這表明存在風險。
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 debt used for growth will improve returns, but won't affect the total 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加利潤。這些投資的資金可以來自前一年的利潤（保留收益），發行新股或借款。在前兩種情況下，roe將反映在企業中使用這些用於業務投資的資金。在後一種情況下，用於增長的債務將提高回報，但不會影響總股權。這樣，債務使用將提高roe，即使業務的基本經濟狀況保持不變。
Combining Omnicom Group's Debt And Its 33% Return On Equity
結合Omnicom Group的債務和其33% ROE
Omnicom Group clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.34. There's no doubt the ROE is impressive, but it's worth keeping in mind that the metric could have been lower if the company were to reduce its debt. 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.
顯然，Omnicom Group使用了大量的債務來提高回報，因爲其負債股本比爲1.34。毫無疑問，ROE令人印象深刻，但值得記住的是，如果公司減少債務，這一指標可能較低。投資者應認真考慮一家公司如果無法輕鬆借款可能會表現如何，因爲信貸市場隨着時間而變化。
Conclusion
結論
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
股本回報率是衡量企業盈利能力，並將其利潤分配給股東的一項有用指標。在我們的清單中，高質量的公司股本回報率高，債務壓力不大。如果兩家公司的債務資本比大致相同，並且一家公司的ROE更高，則我通常更喜歡具有較高ROE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 check this FREE visualization of analyst forecasts for the company.
但是roe只是更大難題中的一部分，因爲高質量的企業通常以高市盈率交易。考慮到股票價格所反映的預期，利潤增長率尤爲重要。因此，您可能需要查看該公司分析師預測的免費可視化工具。
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。