Should You Be Worried About PPL Corporation's (NYSE:PPL) 5.2% Return On Equity?
Should You Be Worried About PPL Corporation's (NYSE:PPL) 5.2% Return On Equity?
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 PPL Corporation (NYSE:PPL), 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分析PPL公司(紐約證券交易所代碼：PPL)，作為一個實際例子。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回報率或淨資產收益率是股東要考慮的一個重要因素，因為它告訴他們他們的資本再投資的效率。換句話說，它揭示了該公司成功地將股東投資轉化為利潤。
View our latest analysis for PPL
查看我們對PPL的最新分析
How To Calculate Return On Equity?
如何計算股本回報率？
The formula for ROE is:
這個淨資產收益率公式是：
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 PPL is:
因此，根據上面的公式，PPL的ROE為：
5.2% = US$719m ÷ US$14b (Based on the trailing twelve months to June 2023).
5.2%=7.19億美元×140億美元(基於截至2023年6月的12個月)。
The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.05 in profit.
“回報”指的是企業在過去一年中獲得的收入。另一種想法是，每價值1美元的股本，公司就能夠賺取0.05美元的利潤。
Does PPL Have A Good ROE?
PPL的淨資產收益率(ROE)好嗎？
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, PPL has a lower ROE than the average (8.1%) in the Electric Utilities industry.
通過將一家公司的淨資產收益率(ROE)與其行業平均水準進行比較，我們可以快速衡量它有多好。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。從下圖可以清楚地看出，PPL的淨資產收益率低於電力公用事業行業的平均水準(8.1%)。
Unfortunately, that's sub-optimal. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high. To know the 2 risks we have identified for PPL visit our risks dashboard for free.
不幸的是，這並不是最優的。不過，我們認為，較低的淨資產收益率仍可能意味著，如果一家公司現有的債務水準較低，那麼它就有機會通過使用槓桿來提高回報。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。要了解我們為PPL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. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total 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。投資的現金可以來自上一年的利潤(留存收益)、發行新股或借款。在前兩種情況下，淨資產收益率將抓住這種資本增長的用途。在後一種情況下，用於增長的債務將提高回報，但不會影響總股本。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 PPL's Debt And Its 5.2% Return On Equity
將PPL的債務和5.2%的股本回報率結合起來
PPL does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.07. 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.
PPL確實使用了大量債務來增加回報。它的債務與股本比率為1.07。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 a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. 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。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。在其他條件相同的情況下，淨資產收益率越高越好。
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. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. 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。重要的是要考慮其他因素，比如未來的利潤增長，以及未來需要多少投資。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 PPL 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PPL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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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.