Returns On Capital Signal Tricky Times Ahead For Zhejiang Biyi Electric Appliance (SHSE:603215)
Returns On Capital Signal Tricky Times Ahead For Zhejiang Biyi Electric Appliance (SHSE:603215)
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. In light of that, when we looked at Zhejiang Biyi Electric Appliance (SHSE:603215) and its ROCE trend, we weren't exactly thrilled.
找到一家具有大幅增长潜力的企业并非易事,但如果我们看看几个关键的财务指标,这是可能的。在其他方面,我们希望看到两件事;第一,不断增长的退货一是关于已用资本(ROCE),二是公司的金额已动用资本的比例。如果你看到这个,通常意味着它是一家拥有出色商业模式和大量有利可图的再投资机会的公司。有鉴于此,当我们看到浙江必益电器(上海证券交易所:603215)和它的ROCE趋势,我们并不是很兴奋。
What Is Return On Capital Employed (ROCE)?
什么是资本回报率(ROCE)?
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Zhejiang Biyi Electric Appliance is:
对于那些不确定ROCE是什么的人,它衡量的是一家公司可以从其业务中使用的资本产生的税前利润。浙江比翼电器的这一计算公式为:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.19 = CN¥203m ÷ (CN¥1.6b - CN¥598m) (Based on the trailing twelve months to June 2023).
0.19=CN元2.03亿?(CN元16亿-CN元5.98亿)(根据截至2023年6月的往绩12个月计算)。
So, Zhejiang Biyi Electric Appliance has an ROCE of 19%. In absolute terms, that's a satisfactory return, but compared to the Consumer Durables industry average of 6.6% it's much better.
所以,浙江必益电器的净资产收益率为19%。就绝对值而言,这是一个令人满意的回报,但与耐用消费品行业6.6%的平均水平相比,这要好得多。
See our latest analysis for Zhejiang Biyi Electric Appliance
请看我们对浙江必益电器的最新分析
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231014/0-313ce062b568ab4bae7d24d4665d1413-0-2a984e5cea9f60db5601793e361a80ab.png/big)
In the above chart we have measured Zhejiang Biyi Electric Appliance's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
在上面的图表中,我们衡量了浙江必益电器之前的净资产收益率和之前的业绩,但可以说,未来更重要。如果您感兴趣,您可以在我们的免费分析师对该公司的预测报告。
How Are Returns Trending?
回报趋势如何?
When we looked at the ROCE trend at Zhejiang Biyi Electric Appliance, we didn't gain much confidence. Around four years ago the returns on capital were 46%, but since then they've fallen to 19%. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line.
当我们看着浙江必益电器的ROCE趋势时,我们并没有获得太多信心。大约四年前,资本回报率为46%,但自那以来已降至19%。与此同时,该公司正在利用更多资本,但这在过去12个月的销售额方面没有太大变化,因此这可能反映了较长期的投资。从现在开始,值得密切关注该公司的收益,看看这些投资最终是否真的为利润做出了贡献。
On a side note, Zhejiang Biyi Electric Appliance has done well to pay down its current liabilities to 36% of total assets. So we could link some of this to the decrease in ROCE. Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk. Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE.
另外,浙江必益电器在偿还当前负债至总资产的36%方面做得很好。因此,我们可以将其中一些因素与净资产收益率的下降联系起来。实际上,这意味着它们的供应商或短期债权人减少了对业务的融资,这降低了一些风险因素。由于企业基本上是用自有资金为更多的运营提供资金,你可以说这降低了企业产生净资产收益率的效率。
The Bottom Line On Zhejiang Biyi Electric Appliance's ROCE
浙江必益电器ROCE的底线
To conclude, we've found that Zhejiang Biyi Electric Appliance is reinvesting in the business, but returns have been falling. Since the stock has gained an impressive 17% over the last year, investors must think there's better things to come. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
总而言之,我们发现浙江必益电器正在对该业务进行再投资,但回报一直在下降。鉴于该股在过去一年中的涨幅高达17%,投资者一定认为未来会有更好的结果。但如果这些潜在趋势的轨迹继续下去,我们认为从现在开始出现多管齐下的可能性并不高。
One more thing, we've spotted 1 warning sign facing Zhejiang Biyi Electric Appliance that you might find interesting.
还有一件事,我们发现了1个警告标志面对浙江必益电器,你可能会感兴趣。
While Zhejiang Biyi Electric Appliance may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
尽管浙江必益电器目前的回报率可能不是最高的,但我们已经编制了一份目前股本回报率超过25%的公司名单。看看这个免费在这里列出。
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