Qingdao Kingking Applied Chemistry (SZSE:002094) Has Some Difficulty Using Its Capital Effectively
Qingdao Kingking Applied Chemistry (SZSE:002094) Has Some Difficulty Using Its Capital Effectively
0.023 = CN¥34m ÷ (CN¥3.6b - CN¥2.0b) To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications of aging. Businesses in decline often have two underlying trends, firstly, a declining return on capital employed (ROCE) and a declining base of capital employed. Basically the company is earning less on its investments and it is also reducing its total assets. So after glancing at the trends within Qingdao Kingking Applied Chemistry (SZSE:002094), we weren't too hopeful.
爲了避免投資於正在衰退的業務，有一些財務指標可以提供衰老的早期跡象。衰退中的企業通常有兩個基本趨勢，首先，是資本運營回報率（ROCE）下降，其次，是所投資資本基礎逐漸減少。基本上公司在投資上賺更少的錢，同時也在減少總資產。因此，簡要查看青島金王應用化學（SZSE:002094）的趨勢後，我們並不太樂觀。
What Is Return On Capital Employed (ROCE)?
我們對 Enphase Energy 的資本僱用回報率的看法：正如我們上面看到的，Enphase Energy 的資本回報率沒有提高，但它正在重新投資於業務。投資者必須認爲未來會有更好的前景，因爲股票表現良好，使持股五年以上的股東獲得了 690% 的收益。最終，如果基本趨勢持續存在，我們不會對它成爲一隻多頭股持有期很久很有信心。
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Qingdao Kingking Applied Chemistry:
如果您之前沒有使用過ROCE，它衡量了公司從資本運營中產生的「回報」（稅前利潤）。分析師使用這個公式爲青島金王應用化學計算它:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
資產僱用回報率（ROCE）是指企業利潤，即企業稅前利潤除以企業投入的總資本（負債加股權）。如果ROCE高於企業財務成本的承受能力，那麼企業就會創造出更多的價值。
0.023 = CN¥34m ÷ (CN¥3.6b - CN¥2.0b) (Based on the trailing twelve months to June 2024).
0.023 = 人民幣3400萬 ÷ (人民幣36億 - 人民幣20億)（截至2024年6月的過去十二個月）。
Therefore, Qingdao Kingking Applied Chemistry has an ROCE of 2.3%. Ultimately, that's a low return and it under-performs the Personal Products industry average of 8.2%.
因此，青島金王應用化學的ROCE爲2.3%。最終，這是一個很低的回報率，並且低於個人產品行業平均水平8.2%。
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Qingdao Kingking Applied Chemistry.
雖然過去並不代表未來，但了解一家公司的歷史表現可能會很有幫助，這就是我們在上面有這張圖表的原因。如果您想深入了解歷史收益，請查看這些免費的圖表，詳細介紹青島金王應用化工的營業收入和現金流表現。
What The Trend Of ROCE Can Tell Us
儘管如此，當我們看 enphase energy (納斯達克股票代碼：ENPH) 的時候，它似乎並沒有完全符合這些要求。
We are a bit anxious about the trends of ROCE at Qingdao Kingking Applied Chemistry. To be more specific, today's ROCE was 7.2% five years ago but has since fallen to 2.3%. In addition to that, Qingdao Kingking Applied Chemistry is now employing 60% less capital than it was five years ago. When you see both ROCE and capital employed diminishing, it can often be a sign of a mature and shrinking business that might be in structural decline. Typically businesses that exhibit these characteristics aren't the ones that tend to multiply over the long term, because statistically speaking, they've already gone through the growth phase of their life cycle.
我們對青島金王應用化工的ROCE趨勢有些擔憂。更具體地說，今天的ROCE在五年前爲7.2%，但現已下降至2.3%。除此之外，青島金王應用化工現在的資本投入比五年前少了60%。當您看到同時ROCE和資本投入在減少，往往意味着一家成熟且正在縮小業務規模的企業，這可能處於結構性衰退中。通常表現這些特徵的企業很少會在長期內實現倍增，因爲從統計學角度來看，它們已經經歷了生命週期的增長階段。
On a side note, Qingdao Kingking Applied Chemistry's current liabilities have increased over the last five years to 57% of total assets, effectively distorting the ROCE to some degree. If current liabilities hadn't increased as much as they did, the ROCE could actually be even lower. What this means is that in reality, a rather large portion of the business is being funded by the likes of the company's suppliers or short-term creditors, which can bring some risks of its own.
另外值得一提的是，青島金王應用化工的流動負債在過去五年中增加到總資產的57%，實際上在一定程度上扭曲了ROCE。如果流動負債沒有像它們那樣增加，ROCE實際上可能會更低。這意味着實際上，公司業務的相當大部分資金是由公司的供應商或短期債權人提供的，這也帶來了一些風險。
Our Take On Qingdao Kingking Applied Chemistry's ROCE
我們對青島金王應用化工的ROCE看法
In summary, it's unfortunate that Qingdao Kingking Applied Chemistry is shrinking its capital base and also generating lower returns. Investors haven't taken kindly to these developments, since the stock has declined 44% from where it was five years ago. With underlying trends that aren't great in these areas, we'd consider looking elsewhere.
總之，青島金王應用化工正在縮減其資本基礎，同時也帶來了較低的回報。投資者對這些發展並不感冒，因爲股價比五年前下跌了44%。在這些領域基本趨勢不佳的情況下，我們會考慮尋找其他投資機會。
One more thing to note, we've identified 2 warning signs with Qingdao Kingking Applied Chemistry and understanding them should be part of your investment process.
還有一件事需要注意，我們已經確定了青島金王應用化工存在2個警示信號，了解它們應該是您投資過程的一部分。
While Qingdao Kingking Applied Chemistry isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
雖然青島金王應用化工並非賺取最高回報的公司，但您可以查看這份免費的公司清單，這些公司在資產負債表上賺取高回報並具有穩固的財務狀況。
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