Capital Allocation Trends At Torrid Holdings (NYSE:CURV) Aren't Ideal
Capital Allocation Trends At Torrid Holdings (NYSE:CURV) Aren't Ideal
There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Looking at Torrid Holdings (NYSE:CURV), it does have a high ROCE right now, but lets see how returns are trending.
如果我們想確定下一個多功能裝袋機,有一些關鍵趨勢需要關注。通常,我們希望注意到增長的趨勢 返回 在資本使用率(ROCE)方面,除此之外,還在擴大 基礎 所用資本的比例。這向我們表明,它是一臺複合機器,能夠持續將其收益再投資到業務中併產生更高的回報。從Torrid Holdings(紐約證券交易所代碼:CURV)來看,它目前的投資回報率確實很高,但讓我們看看回報率的趨勢。
Understanding Return On Capital Employed (ROCE)
了解資本使用回報率 (ROCE)
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Torrid Holdings is:
對於那些不確定ROCE是什麼的人,它衡量的是公司從其業務中使用的資本中可以產生的稅前利潤金額。Torrid Holdings的計算公式爲:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已動用資本回報率 = 息稅前收益 (EBIT) ¥(總資產-流動負債)
0.22 = US$57m ÷ (US$509m - US$252m) (Based on the trailing twelve months to October 2023).
0.22 = 5700萬美元 ÷(5.09億美元-2.52億美元) (基於截至2023年10月的過去十二個月)。
So, Torrid Holdings has an ROCE of 22%. In absolute terms that's a great return and it's even better than the Specialty Retail industry average of 13%.
因此,Torrid Holdings的投資回報率爲22%。從絕對值來看,這是一個不錯的回報,甚至比專業零售行業13%的平均水平還要好。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240222/0-b9cebc81787f2c1c811f5fd79d6d214d-0-9d37b38853d3dee812b05a2a29beea6c.png/big)
In the above chart we have measured Torrid Holdings' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Torrid Holdings .
在上圖中,我們將Torrid Holdings之前的投資回報率與之前的表現進行了比較,但可以說,未來更爲重要。如果您有興趣,可以在我們的Torrid Holdings免費分析師報告中查看分析師的預測。
What Does the ROCE Trend For Torrid Holdings Tell Us?
Torrid Holdings的投資回報率趨勢告訴我們什麼?
In terms of Torrid Holdings' historical ROCE movements, the trend isn't fantastic. To be more specific, while the ROCE is still high, it's fallen from 43% where it was five years ago. Given the business is employing more capital while revenue has slipped, this is a bit concerning. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased.
就Torrid Holdings的歷史ROCE走勢而言,這種趨勢並不理想。更具體地說,儘管投資回報率仍然很高,但已從五年前的43%有所下降。鑑於該企業在收入下滑的情況下僱用了更多的資本,這有點令人擔憂。如果這種情況繼續下去,你可能會看到一家試圖進行再投資以促進增長,但由於銷售額沒有增加,實際上正在失去市場份額的公司。
On a separate but related note, it's important to know that Torrid Holdings has a current liabilities to total assets ratio of 50%, which we'd consider pretty high. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower.
另一方面,值得注意的是,Torrid Holdings的流動負債與總資產的比率爲50%,我們認爲這個比率相當高。這實際上意味着供應商(或短期債權人)正在爲業務的很大一部分提供資金,因此請注意,這可能會帶來一些風險因素。雖然這不一定是壞事,但如果這個比率較低,可能會有好處。
Our Take On Torrid Holdings' ROCE
我們對Torrid Holdings的投資回報率的看法
We're a bit apprehensive about Torrid Holdings because despite more capital being deployed in the business, returns on that capital and sales have both fallen. Yet despite these concerning fundamentals, the stock has performed strongly with a 49% return over the last year, so investors appear very optimistic. In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.
我們對Torrid Holdings有點擔心,因爲儘管在業務中部署了更多資金,但資本回報率和銷售額都下降了。然而,儘管基本面存在這些令人擔憂,但該股表現強勁,去年回報率爲49%,因此投資者似乎非常樂觀。無論如何,當前的潛在趨勢對長期表現來說並不是一個好兆頭,因此,除非趨勢逆轉,否則我們將開始將目光投向其他地方。
Torrid Holdings does come with some risks though, we found 5 warning signs in our investment analysis, and 2 of those can't be ignored...
但是,Torrid Holdings確實存在一些風險,我們在投資分析中發現了5個警告信號,其中2個不容忽視...
Torrid Holdings is not the only stock earning high returns. If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals.
Torrid Holdings並不是唯一一家獲得高回報的股票。如果您想了解更多,請查看我們的免費公司名單,列出了基本面穩健且具有高股本回報率的公司。
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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。