Return Trends At NetDragon Websoft Holdings (HKG:777) Aren't Appealing
Return Trends At NetDragon Websoft Holdings (HKG:777) Aren't Appealing
There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, the ROCE of NetDragon Websoft Holdings (HKG:777) looks decent, right now, so lets see what the trend of returns can tell us.
如果我们想要找到下一个多倍增长的公司，有一些关键趋势需要注意。在完美的世界里，我们想看到一家公司将更多的资本投入到自己的业务中，最理想的情况是从这些资本中获取的收益也在不断增加。如果您看到这种情况，通常意味着这是一家拥有出色业务模式和充足盈利再投资机会的公司。因此，我们来关注网龙（香港交易所代码：777）的资本回报率（ROCE），目前情况看起来还不错，让我们看看回报率的趋势。
Return On Capital Employed (ROCE): What Is It?
资本雇用回报率（ROCE）是什么？
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for NetDragon Websoft Holdings, this is the formula:
对于那些不了解的人来说，ROCE是一个公司每年税前利润（回报率）与业务中使用的资本相对应的度量标准。要计算网龙（香港交易所代码：777）的ROCE指标，可以使用以下公式：
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
资产雇用回报率（ROCE）是指企业利润，即企业税前利润除以企业投入的总资本（负债加股权）。如果ROCE高于企业财务成本的承受能力，那么企业就会创造出更多的价值。
0.12 = CN¥852m ÷ (CN¥10b - CN¥3.4b) (Based on the trailing twelve months to December 2023).
0.12 = 8.52亿元人民币÷（100亿元人民币- 34亿元人民币）（基于截至2023年12月的过去十二个月）.
Therefore, NetDragon Websoft Holdings has an ROCE of 12%. In absolute terms, that's a satisfactory return, but compared to the Entertainment industry average of 6.6% it's much better.
因此，网龙（香港交易所代码：777）的ROCE为12%。就绝对价值而言，这是一个令人满意的回报率，但与娱乐行业平均回报率6.6%相比要好得多。
Above you can see how the current ROCE for NetDragon Websoft Holdings compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering NetDragon Websoft Holdings for free.
您可以看到当前网龙（香港交易所代码：777）的ROCE与其过去的资本回报率相比如何，但是从过去的数据中我们得到的信息是有限的。如果您愿意，可以免费查看覆盖网龙（香港交易所代码：777）的分析师的预测。
What The Trend Of ROCE Can Tell Us
尽管如此，当我们看 enphase energy (纳斯达克股票代码：ENPH) 的时候，它似乎并没有完全符合这些要求。
While the current returns on capital are decent, they haven't changed much. Over the past five years, ROCE has remained relatively flat at around 12% and the business has deployed 32% more capital into its operations. Since 12% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns.
虽然当前资本回报率还算不错，但是它们并没有太多变化。在过去的五年中，ROCE基本相同，在12%左右，并且业务部署了32%的资本到其运营中。由于12%是一个适度的资本回报率，因此看到企业可以以这样的良好回报率继续再投资是很好的。在长时间的运营过程中，这样的回报可能并不太令人兴奋，但如果始终如一，它们可以通过股票回报来支付。
On another note, while the change in ROCE trend might not scream for attention, it's interesting that the current liabilities have actually gone up over the last five years. This is intriguing because if current liabilities hadn't increased to 33% of total assets, this reported ROCE would probably be less than12% because total capital employed would be higher.The 12% ROCE could be even lower if current liabilities weren't 33% of total assets, because the the formula would show a larger base of total capital employed. With that in mind, just be wary if this ratio increases in the future, because if it gets particularly high, this brings with it some new elements of risk.
另一方面，尽管ROCE趋势的变化可能并不引人注目，但有趣的是，流动负债在过去的五年中实际上增加了。这很有趣，因为如果流动负债没有增加到总资产的33%，这份报告的ROCE可能会低于12%，因为总投资本就会更高。如果将来这一比率上升得特别高，这将带来一些新的风险因素。
The Bottom Line
还有一件事需要注意的是，我们已经确定了上海医药的2个警告信号，了解这些信号应该成为你的投资过程的一部分。
The main thing to remember is that NetDragon Websoft Holdings has proven its ability to continually reinvest at respectable rates of return. Despite the good fundamentals, total returns from the stock have been virtually flat over the last five years. That's why we think it'd be worthwhile to look further into this stock given the fundamentals are appealing.
需要记住的主要事情是，网龙（香港交易所代码：777）已经证明了自己能够不断地以可观的回报率进行再投资。尽管基本面良好，但股票的总回报在过去的五年中基本持平。因此，我们认为鉴于其基本面具有吸引力，进一步研究该股票是值得的。
One more thing to note, we've identified 1 warning sign with NetDragon Websoft Holdings and understanding it should be part of your investment process.
还有一件事要注意的是，我们已经发现网龙（香港交易所代码：777）存在1个警告信号，了解它应该成为您的投资流程的一部分。
While NetDragon Websoft Holdings may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
尽管网龙（香港交易所代码：777）目前的回报率并不是最高的，但我们已经编制了一份目前获得的ROE比该公司更高的公司的列表。在此免费查看此列表。
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论，只使用公正的方法论，我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议，也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意，我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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