Should You Be Worried About Light & Wonder, Inc.'s (NASDAQ:LNW) 12% Return On Equity?
Should You Be Worried About Light & Wonder, Inc.'s (NASDAQ:LNW) 12% Return On Equity?
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). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Light & Wonder, Inc. (NASDAQ:LNW).
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。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Light & Wonder, Inc.(納斯達克股票代碼:LNW)。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回報率或投資回報率是對公司增值和管理投資者資金的有效性的考驗。簡而言之,它衡量公司相對於股東權益的盈利能力。
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(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for Light & Wonder is:
因此,根據上述公式,《光與奇蹟》的投資回報率爲:
12% = US$133m ÷ US$1.1b (Based on the trailing twelve months to September 2023).
12% = 1.33億美元 ÷ 11億美元(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 $1 worth of equity, the company was able to earn $0.12 in profit.
“回報” 是指公司去年的收益。另一種看法是,每持有價值1美元的股權,該公司就能獲得0.12美元的利潤。
Does Light & Wonder Have A Good ROE?
《光與奇蹟》有不錯的投資回報率嗎?
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 Light & Wonder has a lower ROE than the average (17%) in the Hospitality industry classification.
可以說,評估公司投資回報率的最簡單方法是將其與行業平均水平進行比較。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。如果你看下圖,你會發現Light & Wonder的投資回報率低於酒店業分類中的平均水平(17%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240202/0-fa52d2f6a7e81f48e377dacfeaa1d3df-0-87b4054dd4735290d2456615d5054c01.png/big)
That certainly isn't ideal. 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. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. Our risks dashboard should have the 2 risks we have identified for Light & Wonder.
這當然不理想。話雖如此,低投資回報率並不總是一件壞事,尤其是在公司的槓桿率低的情況下,因爲如果公司承擔更多債務,這仍有改進的餘地。鑑於所涉及的風險,高債務水平和低投資回報率的公司是我們希望避免的組合。我們的風險儀表板應包含我們爲《光與奇蹟》確定的兩種風險。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, 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 debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
大多數公司需要來自某個地方的資金來增加利潤。這些現金可以來自發行股票、留存收益或債務。對於第一和第二種選擇,投資回報率將反映現金用於增長的這種用途。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。這將使投資回報率看起來比不使用債務時更好。
Light & Wonder's Debt And Its 12% ROE
《光與奇蹟》的債務及其12%的投資回報率
We think Light & Wonder uses a significant amount of debt to maximize its returns, as it has a significantly higher debt to equity ratio of 3.38. We consider it to be a negative sign when a company has a rather low ROE despite a rather high debt to equity.
我們認爲Light & Wonder使用大量債務來實現回報最大化,因爲它的負債權益比率要高得多,爲3.38。我們認爲,儘管負債與股本的比率相當高,但公司的投資回報率卻相當低,這是一個負面信號。
Conclusion
結論
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. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回報率是衡量企業創造利潤並將其返還給股東的能力的有用指標。能夠在不負債過多的情況下獲得高股本回報的公司通常質量很好。如果兩家公司的投資回報率相同,那麼我通常更喜歡負債較少的公司。
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, 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.
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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。