Is Avista Corporation's (NYSE:AVA) ROE Of 7.6% Concerning?
Is Avista Corporation's (NYSE:AVA) ROE Of 7.6% Concerning?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity 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. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Avista Corporation (NYSE:AVA).
雖然一些投資者已經熟悉財務指標(致敬)，但本文是爲那些想要了解淨資產收益率(roe)以及其重要性的人而寫的。通過實踐學習的方式，我們將看看roe，以更好地了解阿維斯塔(紐交所:AVA)。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE（淨資產收益率）是股東需考慮的一個重要因素，因爲它告訴他們資本被有效地再投資的效果如何。換句話說，它揭示了公司將股東的投資轉化爲利潤的成功程度。
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 Avista is:
因此，根據上述公式，阿維斯塔的roe爲:
7.6% = US$193m ÷ US$2.5b (Based on the trailing twelve months to June 2024).
7.6% = 1.93億美元 ÷ 25億美元(截至2024年6月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.08 in profit.
『回報』指的是公司過去一年的盈利。從另一個角度來看，每1美元的股本，公司能夠獲得0.08美元的利潤。
Does Avista Have A Good ROE?
阿維斯塔的ROE表現如何？
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. As shown in the graphic below, Avista has a lower ROE than the average (9.6%) in the Integrated Utilities industry classification.
判斷公司ROE表現良好與否的一個簡單方法就是將其與行業平均水平進行比較。值得注意的是，這遠非完美的衡量指標，因爲同一行業分類中公司之間存在顯著差異。如下圖所示，阿維斯塔的ROE低於綜合公用事業行業分類的行業平均水平（9.6%）。
That's not what we like to see. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. A high debt company having a low ROE is a different story altogether and a risky investment in our books. Our risks dashboard should have the 3 risks we have identified for Avista.
這不是我們喜歡看到的。儘管如此，我們認爲較低的ROE仍可能意味着公司可以通過利用槓桿來改善回報，前提是其現有債務水平較低。一個高負債的公司擁有較低的ROE就完全是另一回事，對我們來說是一種風險投資。我們的風險特斯拉-儀表應顯示了我們爲阿維斯塔確定的3種風險。
How Does Debt Impact ROE?
債務對ROE的影響是怎樣的？
Virtually all companies need money to invest in the business, to grow 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 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.
幾乎所有公司都需要資金來投資業務，以增加利潤。這筆資金可以來自留存收益、發行新股（股權）或債務。在前兩種情況下，ROE將反映這些資金用於投資業務。在後一種情況下，用於增長的債務將改善回報，但不會影響總股本。這將使ROE看起來比不使用債務時更好。
Avista's Debt And Its 7.6% ROE
阿維斯塔的債務和7.6%的roe
It's worth noting the high use of debt by Avista, leading to its debt to equity ratio of 1.16. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
值得注意的是阿維斯塔對債務的高度使用，導致其債務與股東權益比率爲1.16。即使使用了大量的債務，其roe仍然相當低，這不是一個好的結果，依我們看來。債務增加了風險，並減少了公司未來的選擇，所以您通常希望從中獲得一些良好的回報。
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 a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. 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.
股東權益回報率是衡量企業盈利能力並將利潤返還給股東的有效指標。沒有太多債務的公司能夠實現高回報率通常是高品質的。如果兩家公司的債務股本比大致相同，並且其中一家公司的roe更高，我通常會更喜歡roe更高的一家公司。
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ROE只是一個更大拼圖中的一部分，因爲高質量的企業往往以高倍數的收益交易。利潤增長率與股票價格所反映的預期之間的差異，是特別需要考慮的因素。所以你可能想要檢查一下公司分析師預測的這個免費可視化工具。
Of course Avista may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
當然，阿維斯塔可能不是最好的股票可供購買。因此，您可能希望查看這個免費的公司集合，這些公司的roe高而債務低。
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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。
