Returns On Capital Signal Tricky Times Ahead For Dongguan Huali IndustriesLtd (SHSE:603038)
Returns On Capital Signal Tricky Times Ahead For Dongguan Huali IndustriesLtd (SHSE:603038)
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Having said that, from a first glance at Dongguan Huali IndustriesLtd (SHSE:603038) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
我们应该寻找哪些趋势?我们想确定可以长期价值成倍增长的股票?理想情况下,企业将表现出两种趋势;首先是增长 返回 论资本使用率(ROCE),其次是增加 金额 所用资本的比例。基本上,这意味着公司拥有可以继续进行再投资的盈利计划,这是复合机器的特征。话虽如此,乍一看东莞华利实业有限公司(SHSE: 603038),我们并不是对回报的趋势不屑一顾,但让我们更深入地了解一下。
What Is Return On Capital Employed (ROCE)?
什么是资本使用回报率(ROCE)?
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Dongguan Huali IndustriesLtd:
为了澄清一下你是否不确定,ROCE是评估公司从投资于其业务的资本中获得多少税前收入(按百分比计算)的指标。分析师使用这个公式来计算东莞华利实业有限公司的利润:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已动用资本回报率 = 息税前收益 (EBIT) ¥(总资产-流动负债)
0.023 = CN¥41m ÷ (CN¥2.1b - CN¥227m) (Based on the trailing twelve months to September 2023).
0.023 = 4100万元人民币 ÷(21亿元人民币-2.27亿元人民币) (基于截至2023年9月的过去十二个月)。
Thus, Dongguan Huali IndustriesLtd has an ROCE of 2.3%. In absolute terms, that's a low return and it also under-performs the Consumer Durables industry average of 7.9%.
因此,东莞华利实业有限公司的投资回报率为2.3%。从绝对值来看,这是一个低回报,其表现也低于耐用消费品行业平均水平的7.9%。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240204/0-c1b96ca02b89a420721070719f2d8e7e-0-111a29941438c5c044201f7f97df3d40.png/big)
Historical performance is a great place to start when researching a stock so above you can see the gauge for Dongguan Huali IndustriesLtd's ROCE against it's prior returns. If you want to delve into the historical earnings, revenue and cash flow of Dongguan Huali IndustriesLtd, check out these free graphs here.
历史表现是研究股票的绝佳起点,因此在上方您可以看到东莞华利实业有限公司的投资回报率与先前回报的对比。如果您想深入了解东莞华利实业有限公司的历史收益、收入和现金流,请在此处查看这些免费图表。
What The Trend Of ROCE Can Tell Us
ROCE 的趋势能告诉我们什么
In terms of Dongguan Huali IndustriesLtd's historical ROCE movements, the trend isn't fantastic. Over the last five years, returns on capital have decreased to 2.3% from 6.7% five years ago. Given the business is employing more capital while revenue has slipped, this is a bit concerning. This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - "less bang for their buck" per se.
就东莞华利实业有限公司的历史ROCE走势而言,这一趋势并不理想。在过去五年中,资本回报率从五年前的6.7%降至2.3%。鉴于该企业在收入下滑的情况下雇用了更多的资本,这有点令人担忧。这可能意味着该企业正在失去其竞争优势或市场份额,因为尽管向风险投资投入了更多的资金,但它产生的回报实际上更低—— “成本效益更低” 本身。
The Bottom Line
底线
From the above analysis, we find it rather worrisome that returns on capital and sales for Dongguan Huali IndustriesLtd have fallen, meanwhile the business is employing more capital than it was five years ago. In spite of that, the stock has delivered a 24% return to shareholders who held over the last five years. Regardless, we don't like the trends as they are and if they persist, we think you might find better investments elsewhere.
从上述分析来看,我们发现相当令人担忧的是,东莞华利实业有限公司的资本回报率和销售回报率有所下降,同时该业务雇用的资金比五年前还要多。尽管如此,该股为在过去五年中持股的股东带来了24%的回报。无论如何,我们不喜欢当前的趋势,如果趋势持续下去,我们认为您可能会在其他地方找到更好的投资。
Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 3 warning signs for Dongguan Huali IndustriesLtd (of which 2 can't be ignored!) that you should know about.
由于几乎每家公司都面临一些风险,因此值得了解它们是什么,我们已经发现了东莞华立实业有限公司的3个警告标志(其中2个不容忽视!)你应该知道的。
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
如果你想寻找收益丰厚的稳健公司,可以免费查看这份资产负债表良好且股本回报率可观的公司名单。
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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。