Is Black Hills Corporation's (NYSE:BKH) 8.4% ROE Better Than Average?
Is Black Hills Corporation's (NYSE:BKH) 8.4% ROE Better Than Average?
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. We'll use ROE to examine Black Hills Corporation (NYSE:BKH), by way of a worked example.
虽然一些投资者已经熟悉财务指标(致敬),但这篇文章是给那些想了解净资产收益率(roe)及其重要性的人。我们将使用roe来审视黑山公司(纽交所:BKH)的情况,通过一个实例来说明。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股东权益回报率(roe)是一种关键指标,用于评估公司管理层如何有效利用公司资本。更简单地说,它衡量了公司相对股东权益的盈利能力。
How Is ROE Calculated?
净资产收益率怎么计算?
Return on equity can be calculated by using the formula:
股东权益报酬率可以使用以下公式计算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润(从持续经营中获得)÷ 股东权益
So, based on the above formula, the ROE for Black Hills is:
因此,根据上述公式,黑山公司的roe为:
8.4% = US$288m ÷ US$3.4b (Based on the trailing twelve months to June 2024).
8.4% = 2.88亿美元 ÷ 340亿美元(基于截至2024年6月的过去十二个月)。
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.08.
“回报”是税后过去12个月的赚取金额。因此,这意味着对于股东每投资1美元,公司会产生0.08美元的利润。
Does Black Hills Have A Good Return On Equity?
黑山能否有良好的净利润率?
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. You can see in the graphic below that Black Hills has an ROE that is fairly close to the average for the Integrated Utilities industry (9.6%).
判断一家公司是否具有良好的净利润率的一种简单方法是将其与同行业平均水平进行比较。但要注意的是,这并不是一个完美的指标,因为同一行业内的公司存在显著差异。从下图可以看出,黑山的净利润率与综合公用事业行业的平均水平(9.6%)相当接近。
![1724947203065](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240830/43078161-0-f9ab4d3af832939592463707c7e1d08d.webp/bigjpg)
So while the ROE is not exceptional, at least its acceptable. While at least the ROE is not lower than the industry, its still worth checking what role the company's debt plays as high debt levels relative to equity may also make the ROE appear high. If true, then it is more an indication of risk than the potential. Our risks dashboardshould have the 3 risks we have identified for Black Hills.
虽然净利润率并不突出,但至少是可以接受的。至少在净利润率方面没有低于同行业的水平,但仍值得检查公司的债务在其中发挥了什么作用,因为相对于股权而言的高债务水平可能也会使净利润率看上去很高。如果是这样,那么这更多是风险的指示而不是潜力的指示。我们的风险仪表板中应该有我们为黑山确定的3个风险。
How Does Debt Impact Return On Equity?
债务如何影响股东回报率?
Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
大多数公司需要从某个地方获得资金,以增加其利润。投资所使用的资金可以来自前年的利润(留存收益),发行新股或借款。在前两种情况下,ROE将捕捉到用于增长的资本使用情况。在后一种情况下,债务的使用将改善回报,但是不会改变股权。因此,债务的使用可以改善ROE,但在像隐喻性地说的恶劣天气的情况下,这也会带来额外的风险。
Black Hills' Debt And Its 8.4% ROE
Black Hills的债务和8.4%的roe
Black Hills clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.41. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
Black Hills显然使用了大量的债务来提高回报率,因为其资产负债比为1.41。相对较低的roe和大量使用债务的组合不是特别令人感兴趣。债务增加了风险,减少了公司未来的选择,所以你通常希望从中获得一些良好的回报。
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 around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
ROE是我们可以比较不同公司业务质量的一种方式。没有负债可以实现高ROE的公司可以被认为是高质量的公司。如果两家公司的负债与股本约同,并且一家公司的ROE更高,则我通常更喜欢ROE更高的公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free report on analyst forecasts for the company.
但是roe只是一个更大的难题的一部分,因为高质量的企业往往以高倍数的盈利进行交易。重要的是考虑其他因素,如未来的利润增长以及未来需要的投资量。所以我认为值得查看一下关于该公司的分析师预测的免费报告。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
当然,您也可能通过寻找其他地方来找到出色的投资。因此,不妨查看这个有趣公司的免费列表。
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