A Closer Look At City Development Environment CO.,Ltd.'s (SZSE:000885) Impressive ROE
A Closer Look At City Development Environment CO.,Ltd.'s (SZSE:000885) Impressive ROE
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. By way of learning-by-doing, we'll look at ROE to gain a better understanding of City Development Environment CO.,Ltd. (SZSE:000885).
我們能做的最好的投資之一是我們自己的知識和技能。考慮到這一點,本文將探討如何使用股本回報率(ROE)來更好地了解業務。通過邊幹邊學的方式,我們將研究投資回報率,以更好地了解City Development Environment CO., Ltd.(深圳證券交易所代碼:000885)。
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.
股本回報率或投資回報率是股東要考慮的重要因素,因爲它告訴他們資本再投資的有效性。簡而言之,它用於評估公司相對於其股權資本的盈利能力。
Check out our latest analysis for City Development EnvironmentLtd
查看我們對城市發展環境有限公司的最新分析
How To Calculate Return On Equity?
如何計算股本回報率?
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營)÷ 股東權益
So, based on the above formula, the ROE for City Development EnvironmentLtd is:
因此,根據上述公式,城市開發環境有限公司的投資回報率爲:
14% = CN¥1.2b ÷ CN¥8.3b (Based on the trailing twelve months to September 2023).
14% = 12億元人民幣 ÷ 83億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.14 in profit.
“回報” 是指公司去年的收益。另一種思考方式是,每持有價值人民幣1元的股權,該公司就能賺取0.14元人民幣的利潤。
Does City Development EnvironmentLtd Have A Good Return On Equity?
城市開發環境有限公司的股本回報率是否良好?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. 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, City Development EnvironmentLtd has a better ROE than the average (6.6%) in the Basic Materials industry.
通過將公司的投資回報率與其行業平均水平進行比較,我們可以快速衡量其表現如何。這種方法的侷限性在於,有些公司與其他公司有很大不同,即使在相同的行業分類中也是如此。從下圖中可以明顯看出,城市開發環境有限公司的投資回報率高於基礎材料行業的平均水平(6.6%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240120/0-0a841cc35d780059d27f8180f3d2b1f0-0-788201198e5a7566b8511de760d6ec50.png/big)
That's clearly a positive. 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 City Development EnvironmentLtd visit our risks dashboard for free.
這顯然是一個積極的方面。但是,請記住,高投資回報率並不一定意味着有效的利潤創造。公司資本結構中債務比例的增加也可能導致較高的投資回報率,而高債務水平可能構成巨大的風險。要了解我們爲City Development EnvironmentLtd確定的兩種風險,請免費訪問我們的風險儀表板。
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. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. 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,增加利潤。投資現金可以來自上一年的利潤(留存收益)、發行新股或借款。在第一和第二種情況下,投資回報率將反映現金用於企業投資的情況。在後一種情況下,使用債務將提高回報,但不會改變股權。以這種方式,債務的使用將提高投資回報率,儘管該業務的核心經濟學保持不變。
City Development EnvironmentLtd's Debt And Its 14% ROE
城市開發環境有限公司的債務及其14%的投資回報率
It's worth noting the high use of debt by City Development EnvironmentLtd, leading to its debt to equity ratio of 1.83. There's no doubt its ROE is decent, but the very high debt the company carries is not too exciting to see. 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.
值得注意的是,城市發展環境有限公司大量使用債務,導致其債務權益比率爲1.83。毫無疑問,其投資回報率不錯,但該公司揹負的巨額債務並不令人興奮。投資者應該仔細考慮如果一家公司無法如此輕易地借款,其表現會如何,因爲信貸市場確實會隨着時間的推移而發生變化。
Summary
摘要
Return on equity is useful for comparing the quality of different businesses. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回報率對於比較不同業務的質量很有用。在我們的書中,儘管債務較低,但質量最高的公司仍具有很高的股本回報率。如果兩家公司的投資回報率相同,那麼我通常更喜歡債務較少的公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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 you might want to take a peek at this data-rich interactive graph of forecasts for the company.
但是投資回報率只是更大難題的一部分,因爲高質量的企業通常以高倍的收益進行交易。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,你可能想看看這張數據豐富的交互式公司預測圖。
Of course City Development EnvironmentLtd 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,City Development EnvironmentLtd可能不是最好的買入股票。因此,您不妨免費查看其他投資回報率高、負債率低的公司的名單。
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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提供基於歷史數據和分析師預測的評論,我們的文章並非旨在提供財務建議。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,我們的分析可能不會考慮最新的價格敏感型公司公告或定性材料。華爾街只是沒有持有上述任何股票的頭寸。