Capital Allocation Trends At Cowealth Medical ChinaLtd (SHSE:603122) Aren't Ideal
Capital Allocation Trends At Cowealth Medical ChinaLtd (SHSE:603122) Aren't Ideal
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. However, after briefly looking over the numbers, we don't think Cowealth Medical ChinaLtd (SHSE:603122) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
寻找具有大幅增长潜力的企业并不容易，但如果我们看几个关键的财务指标，这是可能的。首先，我们希望看到经过验证的 返回 关于正在增加的资本使用率（ROCE），其次是扩大 基础 所用资本的比例。基本上，这意味着公司拥有可以继续进行再投资的盈利计划，这是复合机器的特征。但是，在简短地研究了这些数字之后，我们认为Cowealth Medical ChinaLTD（SHSE: 603122）在未来不具备多袋公司的实力，但让我们来看看为什么会这样。
Understanding Return On Capital Employed (ROCE)
了解资本使用回报率 (ROCE)
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Cowealth Medical ChinaLtd is:
如果你以前没有与ROCE合作过，它会衡量公司从其业务中使用的资本中产生的 “回报”（税前利润）。Cowealth Medical ChinaLtd的计算公式为：
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已动用资本回报率 = 息税前收益 (EBIT) ¥（总资产-流动负债）
0.055 = CN¥65m ÷ (CN¥1.5b - CN¥286m) (Based on the trailing twelve months to December 2023).
0.055 = 6500万元人民币 ÷（15亿元人民币-2.86亿元人民币） （基于截至2023年12月的过去十二个月）。
Thus, Cowealth Medical ChinaLtd has an ROCE of 5.5%. Ultimately, that's a low return and it under-performs the Healthcare industry average of 10%.
因此，合富医疗中国有限公司的投资回报率为5.5％。归根结底，这是一个低回报，其表现低于医疗保健行业10％的平均水平。
Historical performance is a great place to start when researching a stock so above you can see the gauge for Cowealth Medical ChinaLtd's ROCE against it's prior returns. If you're interested in investigating Cowealth Medical ChinaLtd's past further, check out this free graph covering Cowealth Medical ChinaLtd's past earnings, revenue and cash flow.
历史表现是研究股票的绝佳起点，因此在上方您可以看到Cowealth Medical ChinaLtd的投资回报率与先前的回报率对比的指标。如果你有兴趣进一步调查Cowealth Medical ChinaLTD的过去，请查看这张免费图表，该图表涵盖了Cowealth Medical ChinaLtd过去的收益、收入和现金流。
How Are Returns Trending?
退货趋势如何？
On the surface, the trend of ROCE at Cowealth Medical ChinaLtd doesn't inspire confidence. Over the last five years, returns on capital have decreased to 5.5% from 20% five years ago. And considering revenue has dropped while employing more capital, we'd be cautious. This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - "less bang for their buck" per se.
从表面上看，Cowealth Medical ChinaLtd的投资回报率趋势并不能激发信心。在过去五年中，资本回报率从五年前的20％下降到5.5％。考虑到在雇用更多资本的同时收入有所下降，我们会谨慎行事。这可能意味着该企业正在失去其竞争优势或市场份额，因为尽管向风险投资投入了更多的资金，但它产生的回报实际上更低—— “成本效益更低” 本身。
On a related note, Cowealth Medical ChinaLtd has decreased its current liabilities to 20% of total assets. So we could link some of this to the decrease in ROCE. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
与此相关的是，合富医疗中国有限公司已将其流动负债减少至总资产的20％。因此，我们可以将其中一些与投资回报率的下降联系起来。更重要的是，这可以降低业务风险的某些方面，因为现在公司的供应商或短期债权人为其运营提供的资金减少了。有人会声称这降低了企业产生投资回报的效率，因为该公司现在正在用自己的资金为更多的业务提供资金。
Our Take On Cowealth Medical ChinaLtd's ROCE
我们对Cowealth Medical ChinaLtd投资回报率的看法
We're a bit apprehensive about Cowealth Medical ChinaLtd because despite more capital being deployed in the business, returns on that capital and sales have both fallen. It should come as no surprise then that the stock has fallen 43% over the last year, so it looks like investors are recognizing these changes. With underlying trends that aren't great in these areas, we'd consider looking elsewhere.
我们对Cowealth Medical ChinaLtd有点担忧，因为尽管向该业务投入了更多资金，但该资本的回报率和销售额都下降了。因此，该股去年下跌了43％也就不足为奇了，因此投资者似乎已经意识到了这些变化。由于这些领域的潜在趋势并不理想，我们会考虑将目光投向其他地方。
Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 4 warning signs for Cowealth Medical ChinaLtd (of which 1 shouldn't be ignored!) that you should know about.
由于几乎每家公司都面临一些风险，因此值得了解它们是什么，我们已经发现了Cowealth Medical ChinaLtd的4个警告信号（其中1个不容忽视！）你应该知道的。
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.
对于那些喜欢投资稳健公司的人，可以查看这份资产负债表稳健和股本回报率高的公司的免费清单。
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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。
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