Should You Be Worried About ADT Inc.'s (NYSE:ADT) 4.1% Return On Equity?
Should You Be Worried About ADT Inc.'s (NYSE:ADT) 4.1% Return On Equity?
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. By way of learning-by-doing, we'll look at ROE to gain a better understanding of ADT Inc. (NYSE:ADT).
雖然有些投資者已經精通財務指標（帽子），但本文是給那些想要了解ROE和爲什麼它很重要的人。通過“學以致用”，我們將看ROE以更好地了解ADt Inc. (NYSE:ADT)。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股東應考慮的重要因素是淨資產收益率或roe，因爲它告訴他們投資的資本如何被有效地再投資。簡單來說，它用於評估公司與其股權資本相關的盈利能力。
How Is ROE Calculated?
淨資產收益率怎麼計算？
Return on equity can be calculated by using the formula:
股東權益報酬率可以使用以下公式計算：
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 ADT is:
因此，根據上述公式，ADt的ROE爲:
4.1% = US$154m ÷ US$3.7b (Based on the trailing twelve months to March 2024).
4.1% = US$15400萬 ÷ US$37億（基於截至2024年3月的過去12個月）。
The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.04 in profit.
“利潤”是過去十二個月的利潤。這意味着對於每美元的股東權益，公司創造了0.04美元的利潤。
Does ADT Have A Good Return On Equity?
ADt的ROE好嗎？
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As shown in the graphic below, ADT has a lower ROE than the average (14%) in the Consumer Services industry classification.
可以說，評估公司的ROE最簡單的方法是將其與行業平均值進行比較。然而，由於同一行業分類中公司之間的差異相當大，因此此方法僅有粗略檢查的用途。如下圖所示，ADt的ROE低於消費服務行業分類的平均水平（14%）。
That's not what we like to see. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. A high debt company having a low ROE is a different story altogether and a risky investment in our books. Our risks dashboard should have the 3 risks we have identified for ADT.
這不是我們想看到的。儘管如此，低ROE並不總是一件壞事，特別是如果公司負債較少，因爲這仍然爲公司留下了改進的空間，如果公司繼續增加債務，就可以實現。如果高負債公司ROE較低，則完全是另一回事，並且是我們書中的高風險投資。我們的風險儀表板應該顯示我們已經爲ADt確定的3個風險。
Why You Should Consider Debt When Looking At ROE
爲什麼在觀察ROE時你應該考慮債務問題？
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, 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 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.
大多數公司需要錢 - 從某個地方來獲取利潤。這份現金可以來自發行股票、留存收益或債務。在第一和第二個選項的情況下，淨資產收益率將反映出這種用於增長的現金使用情況。在後一種情況下，用於增長的債務將提高回報，但不會影響總股本。這將使ROE的表現比未使用債務要好。
ADT's Debt And Its 4.1% ROE
ADT的債務和其4.1％的ROE
ADT does use a high amount of debt to increase returns. It has a debt to equity ratio of 2.09. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
ADt確實使用了大量的債務來增加回報。它的負債股本比率爲2.09。由於ROE相當低且使用了大量債務，目前很難對該企業感到興奮。債務確實帶來額外風險，因此只有在公司從中獲得一定的回報時才真正值得做。
Conclusion
結論
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 around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
股東權益回報率對比不同企業的質量很有用。沒有太多債務就能取得高股東權益回報率的公司通常質量較好。如果兩家公司的債權與股權大致相同，而一家公司的股東權益回報率較高，則我通常會更喜歡具有較高股東權益回報率的公司。
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. 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 I think it may be worth checking this free report on analyst forecasts for the company.
儘管ROE是公司質量的一個有用指標，但您必須查看一系列因素才能確定購買股票的正確價格。還必須考慮利潤增長率與當前股票價格反映的利潤增長預期相對的速度。因此，我認爲值得查看公司分析師預測的免費報告。
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？對內容感到擔憂？請直接與我們聯繫。或者，發送電子郵件至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
對本文有反饋？對內容感到擔憂？請直接與我們聯繫。或者，發送電子郵件至editorial-team@simplywallst.com。