How Good Is NiSource Inc. (NYSE:NI), When It Comes To ROE?
How Good Is NiSource Inc. (NYSE:NI), When It Comes To ROE?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of NiSource Inc. (NYSE:NI).
尽管一些投资者已经精通财务指标(帽子提示),但本文适用于那些想了解股本回报率(ROE)及其重要性的人。通过边干边学的方式,我们将研究投资回报率,以更好地了解NiSource Inc.(纽约证券交易所代码:NI)。
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或股本回报率是评估公司如何有效地从股东那里获得的投资中获得回报的有用工具。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 NiSource
查看我们对 niSource 的最新分析
How Is ROE Calculated?
ROE 是如何计算的?
ROE can be calculated by using the formula:
ROE 可以通过以下公式计算:
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 NiSource is:
因此,根据上述公式,NiSource的投资回报率为:
9.3% = US$724m ÷ US$7.8b (Based on the trailing twelve months to September 2023).
9.3% = 7.24亿美元 ÷ 78亿美元(基于截至2023年9月的过去十二个月)。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.09 in profit.
“回报” 是企业去年获得的收入。将其概念化的一种方法是,公司每拥有1美元的股东资本,就能获得0.09美元的利润。
Does NiSource Have A Good ROE?
niSource 的投资回报率不错吗?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. You can see in the graphic below that NiSource has an ROE that is fairly close to the average for the Integrated Utilities industry (9.3%).
通过将公司的投资回报率与其行业平均水平进行比较,我们可以快速衡量其表现如何。重要的是,这远非一个完美的衡量标准,因为各公司在相同的行业分类中差异很大。您可以在下图中看到,NiSource的投资回报率与综合公用事业行业的平均水平(9.3%)相当接近。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240116/0-3e9d1f0fd3a1083a2849ec6e5620a87a-0-54a78ab5fe915a982e5a61978f85cd58.png/big)
So while the ROE is not exceptional, at least its acceptable. Even if the ROE is respectable when compared to the industry, its worth checking if the firm's ROE is being aided by high debt levels. If so, this increases its exposure to financial risk. To know the 2 risks we have identified for NiSource visit our risks dashboard for free.
因此,尽管投资回报率并不例外,但至少是可以接受的。即使与行业相比,投资回报率可观,也值得检查一下公司的投资回报率是否受到高额债务水平的支撑。如果是这样,这会增加其金融风险敞口。要了解我们为NiSource确定的两种风险,请免费访问我们的风险仪表板。
How Does Debt Impact Return On Equity?
债务如何影响股本回报率?
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. 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. That will make the ROE look better than if no debt was used.
公司通常需要投资资金来增加利润。这笔现金可以来自留存收益、发行新股(股权)或债务。在前两种情况下,ROE将反映这种资本的使用来实现增长。在后一种情况下,用于增长的债务将提高回报,但不会影响总权益。这将使投资回报率看起来比不使用债务时要好。
Combining NiSource's Debt And Its 9.3% Return On Equity
合并 NiSource 的债务及其9.3%的股本回报率
NiSource clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.71. 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.
NiSource显然使用大量债务来提高回报,因为其负债权益比率为1.71。相当低的投资回报率和大量使用债务相结合并不是特别有吸引力。债务确实会带来额外的风险,因此只有当公司从中获得可观的回报时,债务才是真正值得的。
Conclusion
结论
Return on equity is useful for comparing the quality of different businesses. 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.
股本回报率对于比较不同业务的质量很有用。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。
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 check this FREE visualization of analyst forecasts for the company.
话虽如此,尽管投资回报率是衡量业务质量的有用指标,但你必须考虑一系列因素才能确定购买股票的正确价格。重要的是要考虑其他因素,例如未来的利润增长,以及未来需要多少投资。因此,您可能需要查看该公司的分析师预测的免费可视化效果。
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.
如果你更愿意去另一家公司——一家财务状况可能优越的公司——那么千万不要错过这份免费的股本回报率高、债务低的有趣公司的名单。
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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。