Read This Before Judging Hillenbrand, Inc.'s (NYSE:HI) ROE
Read This Before Judging Hillenbrand, Inc.'s (NYSE:HI) 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 Hillenbrand, Inc. (NYSE:HI), 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。举一个有效的例子,我们将使用投资回报率来考察希伦布兰德公司(纽约证券交易所代码:HI)。
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.
股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。简而言之,它衡量公司相对于股东权益的盈利能力。
How Do You Calculate Return On Equity?
你如何计算股本回报率?
The formula for return on equity is:
股本回报率的公式是:
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 Hillenbrand is:
因此,根据上述公式,希伦布兰德的投资回报率为:
6.2% = US$107m ÷ US$1.7b (Based on the trailing twelve months to December 2023).
6.2% = 1.07亿美元 ÷ 17亿美元(基于截至2023年12月的过去十二个月)。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.06 in profit.
“回报” 是企业在过去一年中获得的收入。对此进行概念化的一种方法是,该公司每拥有1美元的股东资本,就能获得0.06美元的利润。
Does Hillenbrand Have A Good Return On Equity?
希伦布兰德的股本回报率是否良好?
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, Hillenbrand has a lower ROE than the average (12%) in the Machinery 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,希伦布兰德的投资回报率低于机械行业分类中的平均水平(12%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240321/0-e142cda670dbd4da81577f938a05c2f0-0-df968573d2056f11613e3df30eee5e46.png/big)
That certainly isn't ideal. However, a low ROE is not always bad. If the company's debt levels are moderate to low, then there's still a chance that returns can be improved via the use of financial leverage. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. You can see the 3 risks we have identified for Hillenbrand by visiting our risks dashboard for free on our platform here.
这当然不理想。但是,低投资回报率并不总是坏事。如果公司的债务水平处于中等至低水平,那么仍然有可能通过使用财务杠杆来提高回报。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。您可以访问我们的 3 种风险来查看我们为希伦布兰德确定的三种风险 风险仪表板 在我们的平台上免费使用。
How Does Debt Impact Return On Equity?
债务如何影响股本回报率?
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
公司通常需要投资资金来增加利润。这些现金可以来自发行股票、留存收益或债务。在前两个案例中,投资回报率将涵盖这种资本用于增长的用途。在后一种情况下,债务的使用将提高回报,但不会改变股权。以这种方式,债务的使用将提高投资回报率,尽管该业务的核心经济学保持不变。
Hillenbrand's Debt And Its 6.2% ROE
希伦布兰德的债务及其6.2%的投资回报率
Hillenbrand does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.19. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. 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.
希伦布兰德确实使用大量债务来增加回报。它的债务权益比率为1.19。即使使用了巨额债务,其投资回报率也相当低;在我们看来,这不是一个好结果。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 ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREE visualization of analyst forecasts for the company.
但是投资回报率只是更大难题中的一部分,因为高质量的企业通常以高倍的收益进行交易。还必须考虑利润可能增长的速度,相对于当前价格所反映的利润增长预期。因此,您可能需要查看该公司的分析师预测的免费可视化效果。
But note: Hillenbrand 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.
但请注意:希伦布兰德可能不是最值得购买的股票。因此,来看看这份投资回报率高、债务低的有趣公司的免费清单。
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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。