A Closer Look At Ningbo Joyson Electronic Corp.'s (SHSE:600699) Uninspiring ROE
A Closer Look At Ningbo Joyson Electronic Corp.'s (SHSE:600699) Uninspiring ROE
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 Ningbo Joyson Electronic Corp. (SHSE:600699), by way of a worked example.
尽管一些投资者已经精通财务指标(帽子提示),但本文适用于那些想了解股本回报率(ROE)及其重要性的人。我们将以投资回报率来考察宁波均胜电子股份有限公司(SHSE: 600699),举一个有效的例子。
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. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
投资回报率或股本回报率是评估公司如何有效地从股东那里获得投资回报的有用工具。简而言之,投资回报率显示了每美元从其股东投资中产生的利润。
How Is ROE Calculated?
ROE 是如何计算的?
Return on equity can be calculated by using the formula:
股本回报率可以使用以下公式计算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Ningbo Joyson Electronic is:
因此,根据上述公式,宁波均胜电子的投资回报率为:
5.9% = CN¥1.1b ÷ CN¥19b (Based on the trailing twelve months to December 2023).
5.9% = 11亿元人民币 ÷ 190亿元人民币(基于截至2023年12月的过去十二个月)。
The 'return' is the yearly profit. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.06 in profit.
“回报” 是每年的利润。这意味着,每持有价值1元人民币的股权,公司就会产生0.06元人民币的利润。
Does Ningbo Joyson Electronic Have A Good Return On Equity?
宁波均胜电子有良好的股本回报率吗?
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. As shown in the graphic below, Ningbo Joyson Electronic has a lower ROE than the average (7.4%) in the Auto Components industry classification.
通过将公司的投资回报率与其行业平均水平进行比较,我们可以快速衡量其表现如何。重要的是,这远非一个完美的衡量标准,因为各公司在相同的行业分类中差异很大。如下图所示,宁波均胜电子的投资回报率低于汽车零部件行业分类的平均水平(7.4%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240314/0-8d067ebdf9d4fb488bc1d4860bb23807-0-0bc192bd8df337118c10085af8903362.png/big)
That's not what we like to see. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved.
这不是我们喜欢看到的。但是,我们认为,只要现有债务水平较低,较低的投资回报率仍可能意味着公司有机会通过使用杠杆提高回报。鉴于所涉及的风险,高债务水平和低投资回报率的公司是我们希望避免的组合。
How Does Debt Impact ROE?
债务如何影响投资回报率?
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), 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 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.
大多数公司需要来自某个地方的资金来增加利润。这笔现金可以来自留存收益、发行新股(股权)或债务。就第一和第二种选择而言,投资回报率将反映现金的这种用途,以实现增长。在后一种情况下,使用债务将提高收益,但不会改变权益。因此,使用债务可以提高投资回报率,尽管可以比喻地说,暴风雨天气会带来额外的风险。
Combining Ningbo Joyson Electronic's Debt And Its 5.9% Return On Equity
合并宁波均胜电子的债务及其5.9%的股本回报率
It's worth noting the high use of debt by Ningbo Joyson Electronic, leading to its debt to equity ratio of 1.13. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
值得注意的是,宁波均胜电子大量使用债务,导致其负债权益比率为1.13。由于投资回报率相当低,而且债务使用量很大,目前很难对这项业务感到兴奋。投资者应该仔细考虑如果一家公司无法如此轻易地借款,其表现会如何,因为信贷市场确实会随着时间的推移而发生变化。
Conclusion
结论
Return on equity is useful for comparing the quality of different businesses. 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.
股本回报率对于比较不同业务的质量很有用。能够在不负债过多的情况下获得高股本回报的公司通常质量很好。如果两家公司的投资回报率相同,那么我通常更喜欢负债较少的公司。
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 I think it may be worth checking this free report on analyst forecasts for the company.
但是,当企业质量很高时,市场通常会以反映这一点的价格对其进行出价。与股票价格所反映的预期相比,利润增长率尤其需要考虑。因此,我认为可能值得查看这份关于分析师对公司的预测的免费报告。
Of course Ningbo Joyson Electronic 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.
当然,宁波均胜电子可能不是最好的买入股票。因此,您不妨免费查看其他投资回报率高、负债率低的公司的名单。
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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。