Should You Be Concerned About Guangdong Electric Power Development Co., Ltd.'s (SZSE:000539) ROE?
Should You Be Concerned About Guangdong Electric Power Development Co., Ltd.'s (SZSE:000539) ROE?
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand Guangdong Electric Power Development Co., Ltd. (SZSE:000539).
我们能做的最好的投资之一是我们自己的知识和技能。考虑到这一点,本文将探讨如何使用股本回报率(ROE)来更好地了解业务。为了使课程以实用为基础,我们将使用ROE来更好地了解广东电力发展有限公司(SZSE: 000539)。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回报率或投资回报率是用于评估公司管理层利用公司资本效率的关键指标。换句话说,它揭示了公司成功地将股东投资转化为利润。
How Do You Calculate Return On Equity?
你如何计算股本回报率?
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 Guangdong Electric Power Development is:
因此,根据上述公式,广东电力发展的投资回报率为:
5.5% = CN¥1.8b ÷ CN¥34b (Based on the trailing twelve months to March 2024).
5.5% = 18亿元人民币 ÷ 34亿元人民币(基于截至2024年3月的过去十二个月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.05 in profit.
“回报” 是每年的利润。将其概念化的一种方法是,公司每拥有1元人民币的股东资本,就能获得0.05元的利润。
Does Guangdong Electric Power Development Have A Good ROE?
广东电力发展有良好的投资回报率吗?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, Guangdong Electric Power Development has a lower ROE than the average (7.7%) in the Renewable Energy industry.
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。但是,这种方法仅在粗略检查时有用,因为各公司在相同的行业分类中确实存在很大差异。从下图可以清楚地看出,广东电力发展的投资回报率低于可再生能源行业的平均水平(7.7%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240604/0-1b833fce9890c131586076a786a8d1c2-0-8733e00fb573ac8b50f3fb6391d90dab.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. When a company has low ROE but high debt levels, we would be cautious as the risk involved is too high. To know the 2 risks we have identified for Guangdong Electric Power Development visit our risks dashboard for free.
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。当一家公司的投资回报率低但债务水平高时,我们会谨慎行事,因为所涉及的风险太高。要了解我们为广东电力发展确定的两种风险,请免费访问我们的风险仪表板。
The Importance Of Debt To Return On Equity
债务对股本回报率的重要性
Companies usually need to invest money 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 debt required for growth will boost returns, but will not impact the shareholders' 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。这些现金可以来自留存收益、发行新股(股权)或债务。对于第一和第二种选择,投资回报率将反映现金用于增长的这种用途。在后一种情况下,增长所需的债务将提高回报,但不会影响股东权益。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。
Combining Guangdong Electric Power Development's Debt And Its 5.5% Return On Equity
合并广东电力发展的债务及其5.5%的股本回报率
It's worth noting the high use of debt by Guangdong Electric Power Development, leading to its debt to equity ratio of 2.85. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
值得注意的是,广东电力发展大量使用债务,导致其负债权益比率为2.85。相当低的投资回报率和大量使用债务相结合并不是特别有吸引力。债务确实会带来额外的风险,因此只有当公司从中获得可观的回报时,债务才是真正值得的。
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。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. 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.
话虽如此,尽管投资回报率是衡量业务质量的有用指标,但你必须考虑一系列因素才能确定购买股票的正确价格。与股票价格所反映的预期相比,利润增长率尤其值得考虑。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。
Of course Guangdong Electric Power Development 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,广东电力发展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。