What Wuzhou Special Paper Group Co., Ltd.'s (SHSE:605007) ROE Can Tell Us
What Wuzhou Special Paper Group Co., Ltd.'s (SHSE:605007) ROE Can Tell Us
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 Wuzhou Special Paper Group Co., Ltd. (SHSE:605007).
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,以更好地了解五洲特種紙業集團有限公司(SHSE: 605007)。
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 Wuzhou Special Paper Group
查看我們對五洲特種紙業集團的最新分析
How Do You Calculate Return On Equity?
你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(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for Wuzhou Special Paper Group is:
因此,根據上述公式,五洲特種紙業集團的投資回報率爲:
3.9% = CN¥89m ÷ CN¥2.3b (Based on the trailing twelve months to September 2023).
3.9% = 8900萬元人民幣 ÷ 23億元人民幣(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 CN¥1 worth of shareholders' equity, the company generated CN¥0.04 in profit.
“回報” 是每年的利潤。這意味着,每獲得價值1元人民幣的股東權益,公司就會產生0.04元人民幣的利潤。
Does Wuzhou Special Paper Group Have A Good Return On Equity?
五洲特種紙業集團有良好的股本回報率嗎?
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. The image below shows that Wuzhou Special Paper Group has an ROE that is roughly in line with the Forestry industry average (3.9%).
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。重要的是,這遠非一個完美的衡量標準,因爲各公司在相同的行業分類中差異很大。下圖顯示,五洲特種紙業集團的投資回報率與林業行業平均水平(3.9%)大致持平。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240124/0-b6b83c0179b60362a7bef2ac4e28150f-0-9330a3bf87afc6223d9ac70fe654789a.png/big)
That isn't amazing, but it is respectable. 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. Our risks dashboardshould have the 4 risks we have identified for Wuzhou Special Paper Group.
這並不奇怪,但值得尊敬。即使與行業相比,投資回報率可觀,也值得檢查一下公司的投資回報率是否受到高額債務水平的支撐。如果是這樣,這會增加其金融風險敞口。我們的風險儀表板應該包含我們爲五洲特種紙業集團確定的4種風險。
How Does Debt Impact Return On Equity?
債務如何影響股本回報率?
Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. 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.
實際上,所有公司都需要資金來投資業務,以增加利潤。這些現金可以來自發行股票、留存收益或債務。在前兩種情況下,ROE將利用這種資本來增長。在後一種情況下,增長所需的債務將提高回報,但不會影響股東權益。通過這種方式,債務的使用將提高投資回報率,儘管企業的核心經濟狀況保持不變。
Combining Wuzhou Special Paper Group's Debt And Its 3.9% Return On Equity
合併五洲特種紙業集團的債務及其3.9%的股本回報率
Wuzhou Special Paper Group does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.43. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
五洲特種紙業集團確實使用大量債務來增加回報。它的債務權益比率爲1.43。即使使用了巨額債務,其投資回報率也相當低;在我們看來,這不是一個好結果。債務會增加風險,減少公司未來的選擇,因此您通常希望從使用債務中獲得豐厚的回報。
Conclusion
結論
Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. 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.
股本回報率對於比較不同業務的質量很有用。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視爲高質量的企業。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. 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.
但是,當企業質量很高時,市場通常會以反映這一點的價格出價。重要的是要考慮其他因素,例如未來的利潤增長,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交互式圖表。
Of course Wuzhou Special Paper Group 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,五洲特種紙業集團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。