Should You Be Worried About China Enterprise Company Limited's (SHSE:600675) 2.1% Return On Equity?
Should You Be Worried About China Enterprise Company Limited's (SHSE:600675) 2.1% Return On Equity?
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 China Enterprise Company Limited (SHSE:600675), by way of a worked example.
許多投資者仍在學習在分析股票時可能有用的各種指標。這篇文章是為那些想了解股本回報率(ROE)的人準備的。我們將使用淨資產收益率來檢驗中國企業有限公司(上交所代碼：600675)，作為一個實例。
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. Put another way, it reveals the company's success at turning shareholder investments into profits.
淨資產收益率，即股本回報率，是評估一家公司從股東那裡獲得投資回報的有效程度的有用工具。換句話說，它揭示了該公司成功地將股東投資轉化為利潤。
Check out our latest analysis for China Enterprise
查看我們對中國企業的最新分析
How To Calculate Return On Equity?
如何計算股本回報率？
ROE can be calculated by using the formula:
可使用以下公式計算淨資產收益率：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率=(持續經營的)淨利潤？股東權益
So, based on the above formula, the ROE for China Enterprise is:
因此，根據上述公式，中國企業的淨資產收益率為：
2.1% = CN¥354m ÷ CN¥17b (Based on the trailing twelve months to June 2023).
2.1%=3.54億元×170億元(以截至2023年6月的12個月為基礎)。
The 'return' refers to a company's earnings over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.02 in profit.
“回報”指的是一家公司過去一年的收益。這意味著，股東權益每增加1元，公司就會產生0.02元的利潤。
Does China Enterprise Have A Good Return On Equity?
中國企業的股本回報率好嗎？
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, China Enterprise has a lower ROE than the average (5.7%) in the Real Estate industry classification.
確定一家公司是否擁有良好的股本回報率的一個簡單方法是將其與所在行業的平均水準進行比較。重要的是，這遠遠不是一個完美的衡量標準，因為在同一行業分類中，公司的差異很大。如下圖所示，中國企業的淨資產收益率低於房地產行業分類的平均水準(5.7%)。
Unfortunately, that's sub-optimal. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high. You can see the 3 risks we have identified for China Enterprise by visiting our risks dashboard for free on our platform here.
不幸的是，這並不是最優的。話雖如此，低ROE並不總是一件壞事，特別是如果公司的槓桿率較低，因為如果公司承擔更多債務，這仍有改進的空間。當一家公司的淨資產收益率低但債務水準高時，我們會謹慎行事，因為涉及的風險太高。您可以通過訪問我們為中國企業確定的3個風險風險控制面板在我們的平臺上是免費的。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
公司通常需要投入資金來增加利潤。這些現金可以來自留存收益、發行新股(股權)或債務。在第一種和第二種選擇的情況下，淨資產收益率將反映現金用於增長的這種情況。在後一種情況下，增長所需的債務將提高回報，但不會影響股東權益。在這種情況下，債務的使用將提高淨資產收益率，即使企業的核心經濟保持不變。
Combining China Enterprise's Debt And Its 2.1% Return On Equity
將中國企業的債務和2.1%的股本回報率結合起來
It's worth noting the high use of debt by China Enterprise, leading to its debt to equity ratio of 1.44. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
值得注意的是，中國企業的高負債使用，導致其債務權益比為1.44.它的淨資產收益率相當低，即使使用了大量債務；在我們看來，這不是一個好結果。債務確實會帶來額外的風險，所以只有當一家公司從債務中獲得一些可觀的回報時，它才是真正值得的。
Summary
摘要
Return on equity is one way we can compare its business quality of different companies. 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.
股本回報率是我們比較不同公司業務質量的一種方式。能夠在沒有太多債務的情況下實現高股本回報率的公司通常質量良好。如果兩家公司的債務權益比大致相同，而其中一家公司的淨資產收益率更高，我通常會更喜歡淨資產收益率更高的那家公司。
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 you might want to check this FREE visualization of analyst forecasts for the company.
話雖如此，雖然淨資產收益率是衡量業務質量的有用指標，但你必須考慮一系列因素，才能確定購買股票的合適價格。相對於股價反映的預期，利潤增長率是一個特別重要的考慮因素。因此，你可能想查看分析師對該公司預測的免費可視化。
Of course China Enterprise 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.
當然了中國企業可能不是最值得買入的股票那就是。所以你可能想看看這個免費其他擁有高ROE和低債務的公司的集合。
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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.
對這篇文章有什麼反饋嗎？擔心內容嗎？ 保持聯繫直接與我們聯繫.或者，也可以給編輯組發電子郵件，地址是暗示Wallst.com。
本文由Simply Wall St.撰寫，具有概括性.我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論，我們的文章並不打算作為財務建議.它不構成買賣任何股票的建議，也沒有考慮你的目標或你的財務狀況.我們的目標是為您帶來由基本面數據驅動的長期重點分析.請注意，我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內.Simply Wall St.對上述任何一隻股票都沒有持倉.