Is Black Hills Corporation's (NYSE:BKH) 8.4% ROE Better Than Average?
Is Black Hills Corporation's (NYSE:BKH) 8.4% ROE Better Than Average?
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 Black Hills Corporation (NYSE:BKH), by way of a worked example.
雖然一些投資者已經熟悉財務指標(致敬),但這篇文章是給那些想了解淨資產收益率(roe)及其重要性的人。我們將使用roe來審視黑山公司(紐交所:BKH)的情況,通過一個實例來說明。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東權益回報率(roe)是一種關鍵指標,用於評估公司管理層如何有效利用公司資本。更簡單地說,它衡量了公司相對股東權益的盈利能力。
How Is ROE Calculated?
淨資產收益率怎麼計算?
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 Black Hills is:
因此,根據上述公式,黑山公司的roe爲:
8.4% = US$288m ÷ US$3.4b (Based on the trailing twelve months to June 2024).
8.4% = 2.88億美元 ÷ 340億美元(基於截至2024年6月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.08.
「回報」是稅後過去12個月的賺取金額。因此,這意味着對於股東每投資1美元,公司會產生0.08美元的利潤。
Does Black Hills Have A Good Return On Equity?
黑山能否有良好的淨利潤率?
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. You can see in the graphic below that Black Hills has an ROE that is fairly close to the average for the Integrated Utilities industry (9.6%).
判斷一家公司是否具有良好的淨利潤率的一種簡單方法是將其與同行業平均水平進行比較。但要注意的是,這並不是一個完美的指標,因爲同一行業內的公司存在顯著差異。從下圖可以看出,黑山的淨利潤率與綜合公用事業行業的平均水平(9.6%)相當接近。
![1724947203065](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240830/43078161-0-f9ab4d3af832939592463707c7e1d08d.webp/bigjpg)
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 true, then it is more an indication of risk than the potential. Our risks dashboardshould have the 3 risks we have identified for Black Hills.
雖然淨利潤率並不突出,但至少是可以接受的。至少在淨利潤率方面沒有低於同行業的水平,但仍值得檢查公司的債務在其中發揮了什麼作用,因爲相對於股權而言的高債務水平可能也會使淨利潤率看上去很高。如果是這樣,那麼這更多是風險的指示而不是潛力的指示。我們的風險儀表板中應該有我們爲黑山確定的3個風險。
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. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
大多數公司需要從某個地方獲得資金,以增加其利潤。投資所使用的資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將捕捉到用於增長的資本使用情況。在後一種情況下,債務的使用將改善回報,但是不會改變股權。因此,債務的使用可以改善ROE,但在像隱喻性地說的惡劣天氣的情況下,這也會帶來額外的風險。
Black Hills' Debt And Its 8.4% ROE
Black Hills的債務和8.4%的roe
Black Hills clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.41. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
Black Hills顯然使用了大量的債務來提高回報率,因爲其資產負債比爲1.41。相對較低的roe和大量使用債務的組合不是特別令人感興趣。債務增加了風險,減少了公司未來的選擇,所以你通常希望從中獲得一些良好的回報。
Conclusion
結論
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 around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
ROE是我們可以比較不同公司業務質量的一種方式。沒有負債可以實現高ROE的公司可以被認爲是高質量的公司。如果兩家公司的負債與股本約同,並且一家公司的ROE更高,則我通常更喜歡ROE更高的公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free report on analyst forecasts for the company.
但是roe只是一個更大的難題的一部分,因爲高質量的企業往往以高倍數的盈利進行交易。重要的是考慮其他因素,如未來的利潤增長以及未來需要的投資量。所以我認爲值得查看一下關於該公司的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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