Should We Be Delighted With LSB Industries, Inc.'s (NYSE:LXU) ROE Of 19%?
Should We Be Delighted With LSB Industries, Inc.'s (NYSE:LXU) ROE Of 19%?
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. We'll use ROE to examine LSB Industries, Inc. (NYSE:LXU), by way of a worked example.
儘管一些投資者已經精通財務指標(帽子提示),但本文適用於那些想了解股本回報率(ROE)及其重要性的人。舉一個有效的例子,我們將使用投資回報率來考察LSB工業公司(紐約證券交易所代碼:LXU)。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
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。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。
How Do You Calculate Return On Equity?
你如何計算股本回報率?
ROE can be calculated by using the formula:
ROE 可以通過以下公式計算:
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 LSB Industries is:
因此,根據上述公式,LSB Industries的投資回報率爲:
19% = US$99m ÷ US$533m (Based on the trailing twelve months to September 2023).
19% = 9,900萬美元 ¥5.33億美元(基於截至2023年9月的過去十二個月)。
The 'return' is the yearly profit. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.19 in profit.
“回報” 是每年的利潤。另一種思考方式是,每持有價值1美元的股權,該公司就能獲得0.19美元的利潤。
Does LSB Industries Have A Good Return On Equity?
LSB Industries的股本回報率是否良好?
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. Pleasingly, LSB Industries has a superior ROE than the average (13%) in the Chemicals industry.
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。令人高興的是,LSB Industries的投資回報率高於化工行業的平均水平(13%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240206/0-2c9093d755c66ade1afb8ecfd58a86b7-0-d4300d7a3d2baa2780febb31e3a546e3.png/big)
That is a good sign. With that said, a high ROE doesn't always indicate high profitability. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. To know the 3 risks we have identified for LSB Industries visit our risks dashboard for free.
這是一個好兆頭。話雖如此,高投資回報率並不總是表示高盈利能力。除了淨收入的變化外,較高的投資回報率也可能是高債務相對於股本的結果,這表明存在風險。要了解我們爲LSB Industries確定的三種風險,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. That cash can come from issuing shares, retained earnings, or debt. 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. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
幾乎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。在第一種和第二種情況下,投資回報率將反映這種使用現金投資業務的情況。在後一種情況下,使用債務可以提高回報,但不會改變權益。因此,比喻地說,使用債務可以提高投資回報率,儘管在暴風雨天氣下還會帶來額外的風險。
LSB Industries' Debt And Its 19% ROE
LSB Industries的債務及其19%的投資回報率
It's worth noting the high use of debt by LSB Industries, leading to its debt to equity ratio of 1.09. There's no doubt its ROE is decent, but the very high debt the company carries is not too exciting to see. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
值得注意的是,LSB Industries大量使用債務,導致其負債權益比率爲1.09。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。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。
Summary
摘要
Return on equity is one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
股本回報率是我們可以比較不同公司的業務質量的一種方式。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。在其他條件相同的情況下,更高的投資回報率更好。
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREE visualization of analyst 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。與股票價格所反映的預期相比,利潤增長率尤其值得考慮。因此,您可能需要查看該公司的分析師預測的免費可視化效果。
But note: LSB Industries may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
但請注意:LSB Industries可能不是最值得購買的股票。因此,來看看這份投資回報率高、債務低的有趣公司的免費清單。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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。