Read This Before Judging Baxter International Inc.'s (NYSE:BAX) ROE
Read This Before Judging Baxter International Inc.'s (NYSE:BAX) ROE
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). To keep the lesson grounded in practicality, we'll use ROE to better understand Baxter International Inc. (NYSE:BAX).
許多投資者仍在學習分析股票時可能有用的各種指標。本文適用於那些想了解股本回報率(ROE)的人。爲了使課程以實用性爲基礎,我們將使用ROE來更好地了解百特國際公司(紐約證券交易所代碼:BAX)。
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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
ROE或股本回報率是評估公司如何有效地從股東那裏獲得的投資中獲得回報的有用工具。簡而言之,它用於評估公司相對於其股權資本的盈利能力。
View our latest analysis for Baxter International
查看我們對百特國際的最新分析
How Do You Calculate Return On Equity?
你如何計算股本回報率?
The formula for return on equity is:
股本回報率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for Baxter International is:
因此,根據上述公式,百特國際的投資回報率爲:
2.9% = US$235m ÷ US$8.2b (Based on the trailing twelve months to September 2023).
2.9% = 2.35億美元 ¥82億美元(基於截至2023年9月的過去十二個月)。
The 'return' is the yearly profit. That means that for every $1 worth of shareholders' equity, the company generated $0.03 in profit.
“回報” 是每年的利潤。這意味着,每獲得價值1美元的股東權益,公司就會產生0.03美元的利潤。
Does Baxter International Have A Good ROE?
百特國際的投資回報率是否良好?
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. If you look at the image below, you can see Baxter International has a lower ROE than the average (9.5%) in the Medical Equipment industry classification.
確定一家公司是否具有良好的股本回報率的一種簡單方法是將其與行業的平均水平進行比較。重要的是,這遠非一個完美的衡量標準,因爲在同一行業分類中,公司差異很大。如果你看下圖,你會發現百特國際的投資回報率低於醫療設備行業分類中的平均水平(9.5%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231201/0-adda1c8c2c4ac8a0915247f60902c825-0-ee44c56c3736f0f712ccfff5cc0cdf6c.png/big)
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 Baxter International by visiting our risks dashboard for free on our platform here.
不幸的是,這並不理想。話雖如此,較低的投資回報率並不總是一件壞事,尤其是在公司的槓桿率較低的情況下,因爲如果公司承擔更多債務,這仍有改善的餘地。當一家公司的投資回報率低但債務水平高時,我們會謹慎行事,因爲所涉及的風險太高。您可以通過訪問我們的 Baxter International 了解我們爲百特國際確定的三大風險 風險儀表板 在我們的平台上免費使用。
Why You Should Consider Debt When Looking At ROE
爲什麼在考慮投資回報率時應該考慮債務
Virtually all companies need money to invest in the business, to grow 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 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.
幾乎所有公司都需要資金來投資業務,以增加利潤。這些現金可能來自留存收益、發行新股(股權)或債務。對於第一和第二種選擇,投資回報率將反映這種對現金增長的使用。在後一種情況下,使用債務將提高回報,但不會改變權益。通過這種方式,儘管企業的核心經濟保持不變,但債務的使用將提高投資回報率。
Combining Baxter International's Debt And Its 2.9% Return On Equity
合併百特國際的債務及其2.9%的股本回報率
Baxter International clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 2.02. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
百特國際顯然使用大量債務來提高回報,因爲它的債務權益比率爲2.02。相當低的投資回報率和大量使用債務相結合並不是特別有吸引力。債務確實帶來了額外的風險,因此只有當一家公司從中獲得可觀的回報時,債務才真正值得。
Conclusion
結論
Return on equity is one way we can compare its business quality of different companies. In our books, the highest quality companies have high return on equity, despite low debt. 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.
股本回報率是我們可以比較不同公司的業務質量的一種方式。在我們的賬簿中,儘管債務很低,但質量最高的公司的股本回報率卻很高。如果兩家公司的債務與股權比率大致相同,而一家公司的投資回報率更高,那麼我通常更喜歡投資回報率更高的那家公司。
But when a business is high quality, the market often bids it up to a price that reflects this. 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 I think it may be worth checking this free report on analyst forecasts for the company.
但是,當企業質量很高時,市場通常會以反映這一點的價格對其進行出價。相對於當前價格所反映的利潤增長預期,還必須考慮利潤可能的增長速度。因此,我認爲可能值得查看這份關於分析師對公司的預測的免費報告。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
當然,通過尋找其他地方,你可能會找到一筆不錯的投資。因此,來看看這份有趣的公司的免費清單吧。
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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.
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。