Can Nanjing Red Sun Co.,Ltd. (SZSE:000525) Maintain Its Strong Returns?
Can Nanjing Red Sun Co.,Ltd. (SZSE:000525) Maintain Its Strong Returns?
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Nanjing Red Sun Co.,Ltd. (SZSE:000525), by way of a worked example.
我們能做的最好的投資之一就是我們自己的知識和技能。考慮到這一點，本文將討論如何使用股本回報率(ROE)來更好地瞭解企業。我們將使用淨資產收益率來檢驗南京紅太陽股份有限公司(SZSE：000525)，作為一個實例。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
股本回報率(ROE)是對一家公司增值和管理投資者資金的效率的測試。換句話說，這是一個衡量公司股東提供的資本回報率的盈利比率。
Check out our latest analysis for Nanjing Red SunLtd
查看我們對南京紅太陽股份有限公司的最新分析
How Do You Calculate Return On Equity?
你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 Nanjing Red SunLtd is:
因此，根據上述公式，南京紅日股份有限公司的淨資產收益率為：
9.4% = CN¥134m ÷ CN¥1.4b (Based on the trailing twelve months to June 2023).
9.4%=1.34億元×14億元(基於截至2023年6月的12個月)。
The 'return' refers to a company's earnings over the last year. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.09.
“回報”指的是一家公司過去一年的收益。因此，這意味著股東每投資1元人民幣，公司就會產生0.09元的利潤。
Does Nanjing Red SunLtd Have A Good Return On Equity?
南京紅太陽股份有限公司的股本回報率高嗎？
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Nanjing Red SunLtd has a better ROE than the average (7.2%) in the Chemicals 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。這種方法的侷限性是，一些公司與其他公司有很大的不同，甚至在相同的行業分類中也是如此。從下圖可以清楚地看出，南京紅太陽股份有限公司的淨資產收益率(ROE)高於化工行業的平均水準(7.2%)。
That is a good sign. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . To know the 2 risks we have identified for Nanjing Red SunLtd visit our risks dashboard for free.
這是一個好兆頭。然而，請記住，高淨資產收益率並不一定意味著有效的利潤創造。債務在公司資本結構中的比例較高也可能導致較高的淨資產收益率，而較高的債務水準可能是一個巨大的風險。要了解我們為南京紅太陽股份有限公司確定的兩個風險，請免費訪問我們的風險儀錶板。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, 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. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
大多數公司都需要資金--從某個地方--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。因此，債務的使用可以提高淨資產收益率，儘管打個比方說，在暴風雨天氣的情況下會有額外的風險。
Combining Nanjing Red SunLtd's Debt And Its 9.4% Return On Equity
結合南京紅太陽股份有限公司的債務及其9.4%的股本回報率
We think Nanjing Red SunLtd uses a significant amount of debt to maximize its returns, as it has a significantly higher debt to equity ratio of 3.00. The combination of a rather low ROE and high debt to equity is a negative, in our book.
我們認為南京紅太陽股份有限公司使用了大量的債務來最大化其回報，因為它的債務與股本比率明顯更高，為3.00。在我們的書中，相當低的淨資產收益率和高的債務股本比率的組合是負面的。
Conclusion
結論
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. All else being equal, a higher ROE is better.
股本回報率是衡量一家企業產生利潤並將其返還給股東的能力的有用指標。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。在其他條件相同的情況下，淨資產收益率越高越好。
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. You can see how the company has grow in the past by looking at this FREE detailed graph of past earnings, revenue and cash flow.
但當一項業務是高質量的時，市場往往會將其抬高到反映這一點的價格。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。你可以通過查看這篇免費的文章來了解該公司過去是如何發展壯大的詳細圖表過去的收益、收入和現金流。
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
如果你更願意看看另一家公司--一家財務狀況可能更好的公司--那麼不要錯過這一點免費列出了一些有趣的公司，這些公司擁有高股本回報率和低債務。
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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.