Should You Be Impressed By Xiangtan Yongda Machinery Manufacturing Co., Ltd.'s (SZSE:001239) ROE?
Should You Be Impressed By Xiangtan Yongda Machinery Manufacturing Co., Ltd.'s (SZSE:001239) ROE?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Xiangtan Yongda Machinery Manufacturing Co., Ltd. (SZSE:001239), by way of a worked example.
许多投资者仍在学习分析股票时可能有用的各种指标。本文适用于那些想了解股本回报率(ROE)的人。我们将以投资回报率为例,考察湘潭永达机械制造有限公司(深圳证券交易所:001239)。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
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,它用于评估公司相对于其股权资本的盈利能力。
How Is ROE Calculated?
ROE 是如何计算的?
ROE can be calculated by using the formula:
ROE 可以通过以下公式计算:
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 Xiangtan Yongda Machinery Manufacturing is:
因此,根据上述公式,湘潭永达机械制造的投资回报率为:
17% = CN¥92m ÷ CN¥558m (Based on the trailing twelve months to September 2023).
17% = 9.2亿元人民币 ÷ 5.58亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.17 in profit.
“回报” 是指公司去年的收益。另一种思考方式是,每持有价值1元人民币的股权,该公司就能获得0.17元人民币的利润。
Does Xiangtan Yongda Machinery Manufacturing Have A Good Return On Equity?
湘潭永达机械制造有良好的股本回报率吗?
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As you can see in the graphic below, Xiangtan Yongda Machinery Manufacturing has a higher ROE than the average (7.5%) in the Machinery industry.
确定公司股本回报率是否不错的一种简单方法是将其与该行业的平均水平进行比较。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,湘潭永达机械制造的投资回报率高于机械行业的平均水平(7.5%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240326/0-582571cbab7c50a5a02dc7503f55b797-0-2752bc6f7462ddadc929aa8599ff3303.png/big)
That's clearly a positive. Bear in mind, a high ROE doesn't always mean superior financial performance. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . Our risks dashboardshould have the 2 risks we have identified for Xiangtan Yongda Machinery Manufacturing.
这显然是积极的。请记住,高投资回报率并不总是意味着卓越的财务业绩。公司资本结构中债务比例的增加也可能导致较高的投资回报率,而高债务水平可能构成巨大的风险。我们的风险仪表板应该包含我们为湘潭永达机械制造业确定的两种风险。
How Does Debt Impact Return On Equity?
债务如何影响股本回报率?
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 debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
实际上,所有公司都需要资金来投资业务,以增加利润。这些现金可以来自发行股票、留存收益或债务。在第一和第二种情况下,投资回报率将反映出现金投资业务的使用情况。在后一种情况下,用于增长的债务将提高回报,但不会影响总权益。通过这种方式,债务的使用将提高投资回报率,尽管企业的核心经济状况保持不变。
Combining Xiangtan Yongda Machinery Manufacturing's Debt And Its 17% Return On Equity
合并湘潭永达机械制造的债务及其17%的股本回报率
It's worth noting the high use of debt by Xiangtan Yongda Machinery Manufacturing, leading to its debt to equity ratio of 1.08. While its ROE is respectable, it is worth keeping in mind that there is usually a limit as to how much debt a company can use. 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,湘潭永达机械制造业大量使用债务,导致其负债权益比率为1.08。尽管其投资回报率可观,但值得记住的是,公司可以使用多少债务通常是有限制的。债务会增加风险,减少公司未来的选择,因此您通常希望从使用债务中获得丰厚的回报。
Conclusion
结论
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. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回报率是我们可以比较不同公司的业务质量的一种方式。能够在没有债务的情况下实现高股本回报率的公司可以被视为高质量的企业。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 this detailed graph of past earnings, revenue and cash flow.
但是,当企业质量很高时,市场通常会以反映这一点的价格出价。利润增长率与股票价格所反映的预期相比,是一个特别重要的考虑因素。因此,我认为可能值得免费查看这张过去收益、收入和现金流的详细图表。
Of course Xiangtan Yongda Machinery Manufacturing 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,湘潭永达机械制造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。
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.
对这篇文章有反馈吗?对内容感到担忧?直接联系我们。 或者,给编辑团队 (at) simplywallst.com 发送电子邮件。
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。