Should We Be Delighted With Xianhe Co.,Ltd.'s (SHSE:603733) ROE Of 11%?
Should We Be Delighted With Xianhe Co.,Ltd.'s (SHSE:603733) ROE Of 11%?
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. We'll use ROE to examine Xianhe Co.,Ltd. (SHSE:603733), by way of a worked example.
我們所做的最好的投資之一，是在我們自己的知識和技能方面。有了這個想法，本文將通過一個實例來講解如何使用淨資產收益率（ROE）更好地理解一個企業。我們將以Xianhe科技（SHSE：603733）作爲案例，通過ROE來審視它。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回報率或ROE是一項用於評估公司管理層如何利用公司資本的效率的關鍵指標。簡而言之，它用於評估公司相對於其股本資本的盈利能力。
How To Calculate Return On Equity?
如何計算股東權益報酬率？
ROE can be calculated by using the formula:
淨資產收益率可以使用以下公式進行計算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤（從持續經營中獲得）÷ 股東權益
So, based on the above formula, the ROE for XianheLtd is:
因此，根據上述公式，Xianhe Ltd的ROE是：
11% = CN¥815m ÷ CN¥7.6b (Based on the trailing twelve months to March 2024).
11％=CN¥815m÷CN¥7.6b（基於截至2024年3月的過去12個月）。
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.11.
‘收益率’是公司過去12個月稅後賺取的收益額。這意味着，對於每股股東投資的1元人民幣，該公司會創造0.11元人民幣的利潤。
Does XianheLtd Have A Good ROE?
Xianhe Ltd的ROE表現如何？
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, XianheLtd has a higher ROE than the average (5.7%) in the Forestry industry.
通過將公司的ROE與其行業平均水平進行比較，我們可以快速衡量其表現。這種方法的侷限性在於，有些公司與其他公司非常不同，即使它們屬於相同的行業分類。從下圖中可以看出，Xianhe Ltd的ROE高於林業行業的平均水平（5.7%）。
That's clearly a positive. With that said, a high ROE doesn't always indicate high profitability. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. Our risks dashboardshould have the 3 risks we have identified for XianheLtd.
毫無疑問，這是一個積極的表現。但是，高ROE並不總是說明高盈利能力。除了淨收入的改變之外，高ROE還可能是相對更高的債務與淨資產之比所導致的，這表明存在風險。我們的風險儀表盤應該列出僅對於Xianhe Ltd的3個風險。
How Does Debt Impact Return On Equity?
債務如何影響股東回報率？
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 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. That will make the ROE look better than if no debt was used.
公司通常需要投資資金來增加利潤。這些資金可以來自留存收益、發行新股份（股權）或債務。在前兩種情況下，ROE將反映出這些資金用於業務投資的情況。在後一種情況下，用於增長的債務將提高回報，但不會影響總股權。這將使ROE看起來比沒有使用債務時更好。
XianheLtd's Debt And Its 11% ROE
Xianhe Ltd的債務和其11%的ROE
XianheLtd does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.28. The combination of a rather low ROE and significant use of debt is not particularly appealing. 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.
Xianhe Ltd確實使用了大量債務來提高回報。它的債務股本比爲1.28。相對較低的ROE和顯著的債務使用並不特別吸引人。投資者應該仔細考慮如果一家公司無法輕易借貸會如何表現，因爲信貸市場隨時間會發生改變。
Conclusion
結論
Return on equity is one way we can compare its business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
ROE是我們比較不同公司業務質量的一種方法。一般而言，能夠在不過度依賴於債務的情況下獲得高回報的公司通常是優質的公司。除此之外，其他條件相同，更高的ROE更好。
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. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company.
話雖如此，ROE是業務質量的一個有用指標，但您還必須考慮一整套因素來確定購買股票的正確價格。因此需要考慮其他因素，如未來的利潤增長以及未來需要投入的資金。因此，您可能希望查看本公司的分析師預測的免費可視化。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
當然，您也可能通過尋找其他地方來找到出色的投資。因此，不妨查看這個有趣公司的免費列表。
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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.
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或電郵 editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論，只使用公正的方法論，我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議，也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意，我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
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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