Is Northwest Natural Holding Company's (NYSE:NWN) 8.0% ROE Better Than Average?
Is Northwest Natural Holding Company's (NYSE:NWN) 8.0% ROE Better Than Average?
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). We'll use ROE to examine Northwest Natural Holding Company (NYSE:NWN), by way of a worked example.
许多投资者仍在学习分析股票时可能有用的各种指标。本文适用于那些想了解股本回报率(ROE)的人。我们将使用ROE来研究西北自然控股公司(纽约证券交易所代码:NWN),举一个实例。
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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或投资回报率是股东需要考虑的重要因素,因为它可以告诉他们资本再投资的有效性。简而言之,它用于评估公司相对于其股权资本的盈利能力。
See our latest analysis for Northwest Natural Holding
查看我们对西北自然控股公司的最新分析
How To Calculate Return On Equity?
如何计算股本回报率?
The formula for ROE is:
ROE 的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Northwest Natural Holding is:
因此,根据上述公式,西北自然控股公司的投资回报率为:
8.0% = US$97m ÷ US$1.2b (Based on the trailing twelve months to September 2023).
8.0% = 9,700万美元 ¥12亿美元(基于截至2023年9月的过去十二个月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.08 in profit.
“回报” 是每年的利润。概念化这一点的一种方法是,公司每拥有1美元的股东资本,就会获得0.08美元的利润。
Does Northwest Natural Holding Have A Good Return On Equity?
西北自然控股有良好的股本回报率吗?
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. If you look at the image below, you can see Northwest Natural Holding has a similar ROE to the average in the Gas Utilities industry classification (8.6%).
可以说,评估公司投资回报率的最简单方法是将其与行业平均水平进行比较。这种方法的局限性在于,有些公司与其他公司有很大不同,即使属于相同的行业分类也是如此。如果你看下图,你会发现西北天然控股公司的投资回报率与燃气公用事业行业分类中的平均水平相似(8.6%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231205/0-67ff2e5e1d4050f553a7de1b1368d576-0-fdeb1ac9d593abc285166bcbffe616ea.png/big)
That isn't amazing, but it is respectable. Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels. If a company takes on too much debt, it is at higher risk of defaulting on interest payments. Our risks dashboardshould have the 3 risks we have identified for Northwest Natural Holding.
这并不奇怪,但还是值得尊敬的。尽管投资回报率与该行业相似,但我们仍应进行进一步检查,以查看高债务水平是否提振了该公司的投资回报率。如果一家公司承担过多的债务,则拖欠利息的风险就会更高。我们的风险仪表板应包含我们为西北自然控股公司确定的3种风险。
The Importance Of Debt To Return On Equity
债务对股本回报率的重要性
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. 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. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
公司通常需要投资来增加利润。投资现金可以来自上一年的利润(留存收益)、发行新股或借款。对于第一和第二种选择,投资回报率将反映这种对现金增长的使用。在后一种情况下,增长所需的债务将提高回报,但不会影响股东权益。通过这种方式,尽管企业的核心经济保持不变,但债务的使用将提高投资回报率。
Northwest Natural Holding's Debt And Its 8.0% ROE
西北自然控股的债务及其8.0%的投资回报率
Northwest Natural Holding clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.38. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
西北自然控股显然使用大量债务来提高回报,因为它的负债权益比率为1.38。即使使用了大量债务,它的投资回报率也相当低;在我们看来,这不是一个好结果。债务确实带来了额外的风险,因此只有当一家公司从中获得可观的回报时,债务才真正值得。
Summary
摘要
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.
股本回报率是衡量企业创造利润并将其返还给股东的能力的有用指标。能够在不负债过多的情况下获得高股本回报的公司通常质量很好。在其他条件相同的情况下,更高的投资回报率更好。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company.
但是,投资回报率只是更大难题中的一部分,因为高质量的企业通常以较高的收益倍数进行交易。与股票价格所反映的预期相比,利润增长率尤其需要考虑。因此,我认为可能值得查看这份关于分析师对公司的预测的免费报告。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
当然,通过寻找其他地方,你可能会找到一笔不错的投资。因此,来看看这份有趣的公司的免费清单吧。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。