Should You Be Excited About SDIC Power Holdings Co., Ltd's (SHSE:600886) 9.8% Return On Equity?
Should You Be Excited About SDIC Power Holdings Co., Ltd's (SHSE:600886) 9.8% Return On Equity?
The formula for return on equity is: 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 SDIC Power Holdings Co., Ltd (SHSE:600886), by way of a worked example.
雖然一些投資者已經非常精通財務指標(帽子提示)，但本文面向的是那些想要了解股本回報率(ROE)及其重要性的人。我們將使用淨資產收益率來檢驗上交所(上海證券交易所代碼：600886)，作為一個典型案例。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回報率(ROE)是用來評估公司管理層利用公司資本效率的關鍵指標。簡而言之，它是用來評估一家公司相對於其權益資本的盈利能力。
View our latest analysis for SDIC Power Holdings
查看我們對國投電力控股的最新分析
How To Calculate Return On Equity?
如何計算股本回報率？
The formula for return on equity is:
這個股本回報率公式是：
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 SDIC Power Holdings is:
因此，根據上述公式，國投電力控股的淨資產收益率為：
9.8% = CN¥9.4b ÷ CN¥96b (Based on the trailing twelve months to June 2023).
9.8%=94億元×96億元(基於截至2023年6月的12個月)。
The 'return' is the amount earned after tax over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.10 in profit.
“報稅表”是過去12個月的稅後收入。這意味著，每增加價值1元的股東權益，公司就會產生0.10元的利潤。
Does SDIC Power Holdings Have A Good ROE?
國投電力控股的淨資產收益率好嗎？
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, SDIC Power Holdings has a higher ROE than the average (6.8%) in the Renewable Energy industry.
可以說，評估公司淨資產收益率最簡單的方法是將其與所在行業的平均水準進行比較。然而，這種方法只是作為一種粗略的檢查，因為在同一行業分類中，公司確實有很大的不同。如下圖所示，國投電力控股的淨資產收益率高於可再生能源行業的平均水準(6.8%)。
That's clearly a positive. Bear in mind, a high ROE doesn't always mean superior financial performance. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. To know the 2 risks we have identified for SDIC Power Holdings visit our risks dashboard for free.
這顯然是一個積極的因素。請記住，高淨資產收益率並不總是意味著更好的財務表現。尤其是當一家公司使用高水平的債務為其債務融資時，這可能會提高其淨資產收益率，但高槓桿將公司置於風險之中。要了解我們為國投電力控股確定的兩個風險，請免費訪問我們的風險儀錶板。
How Does Debt Impact ROE?
債務對淨資產收益率有何影響？
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, 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 use of debt will improve the returns, but will not change the 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。這些現金可以來自發行股票、留存收益或債務。在第一種和第二種情況下，淨資產收益率將反映對企業投資的現金使用情況。在後一種情況下，債務的使用將提高回報，但不會改變股權。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 SDIC Power Holdings' Debt And Its 9.8% Return On Equity
將國投電力控股的債務和9.8%的股本回報率結合起來
It's worth noting the high use of debt by SDIC Power Holdings, leading to its debt to equity ratio of 1.50. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. 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.
值得注意的是，國投電力控股高度利用債務，導致其債務權益比達到1.50。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。投資者應該仔細考慮，如果一家公司不能如此輕鬆地借款，它可能會表現如何，因為信貸市場確實會隨著時間的推移而變化。
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 the same ROE, then I would generally prefer the one with less debt.
股本回報率是我們比較不同公司業務質量的一種方式。一家能夠在沒有債務的情況下實現高股本回報率的公司可以被認為是一家高質量的企業。如果兩家公司的淨資產收益率相同，那麼我通常會傾向於債務較少的那一家。
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. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at this data-rich interactive graph of 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。相對於當前價格反映的利潤增長預期，也必須考慮利潤可能增長的速度。因此，你可能想看看這張數據豐富的公司預測互動圖表。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
當然了,如果你把目光投向別處，你可能會發現這是一筆很棒的投資。所以讓我們來看看這個免費有趣的公司名單。
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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.