A Closer Look At Hertz Global Holdings, Inc.'s (NASDAQ:HTZ) Impressive ROE
A Closer Look At Hertz Global Holdings, Inc.'s (NASDAQ:HTZ) Impressive ROE
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. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Hertz Global Holdings, Inc. (NASDAQ:HTZ).
我們能做的最好的投資之一是我們自己的知識和技能。考慮到這一點,本文將探討如何使用股本回報率(ROE)來更好地了解業務。通過邊幹邊學的方式,我們將研究投資回報率,以更好地了解赫茲環球控股有限公司(納斯達克股票代碼:HTZ)。
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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵指標。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。
How Do You Calculate Return On Equity?
你如何計算股本回報率?
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for Hertz Global Holdings is:
因此,根據上述公式,赫茲環球控股的投資回報率爲:
20% = US$616m ÷ US$3.1b (Based on the trailing twelve months to December 2023).
20% = 6.16億美元 ÷ 31億美元(基於截至2023年12月的過去十二個月)。
The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.20 in profit.
“回報” 是企業在過去一年中獲得的收入。另一種思考方式是,每持有價值1美元的股權,該公司就能獲得0.20美元的利潤。
Does Hertz Global Holdings Have A Good Return On Equity?
赫茲環球控股有良好的股本回報率嗎?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. 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, Hertz Global Holdings has a higher ROE than the average (14%) in the Transportation industry.
可以說,評估公司投資回報率的最簡單方法是將其與行業平均水平進行比較。這種方法的侷限性在於,有些公司與其他公司有很大不同,即使在相同的行業分類中也是如此。如下圖所示,赫茲環球控股的投資回報率高於運輸行業的平均水平(14%)。
![roe](https://newsfile.futunn.com/public/NN-PersistNewsContentImage/7781/20240208/0-e2c81e6ac0aeea69392a0530f61808c6-0-607e480bba84e76606f7c2548ba527ad.png/big)
That's clearly a positive. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . You can see the 4 risks we have identified for Hertz Global Holdings by visiting our risks dashboard for free on our platform here.
這顯然是積極的。但是,請記住,高投資回報率並不一定意味着有效的利潤創造。公司資本結構中債務比例的增加也可能導致較高的投資回報率,而高債務水平可能構成巨大的風險。您可以訪問我們的 4 種風險來查看我們爲赫茲環球控股確定的 4 種風險 風險儀表板 在我們的平台上免費使用。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
實際上,所有公司都需要資金來投資業務,以增加利潤。這些現金可以來自發行股票、留存收益或債務。在前兩種情況下,ROE將利用這種資本來增長。在後一種情況下,增長所需的債務將提高回報,但不會影響股東權益。這將使投資回報率看起來比不使用債務時要好。
Hertz Global Holdings' Debt And Its 20% ROE
赫茲環球控股的債務及其20%的投資回報率
It seems that Hertz Global Holdings uses a huge volume of debt to fund the business, since it has an extremely high debt to equity ratio of 5.07. Its ROE is pretty good, but given the impact of the debt, we're less than enthused, overall.
赫茲環球控股公司似乎使用巨額債務爲該業務提供資金,因爲其債務權益比率極高,爲5.07。它的投資回報率相當不錯,但考慮到債務的影響,總體而言,我們並不那麼熱情。
Conclusion
結論
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. 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.
股本回報率是衡量企業創造利潤並將其返還給股東的能力的有用指標。能夠在不負債過多的情況下獲得高股本回報的公司通常質量很好。在其他條件相同的情況下,更高的投資回報率更好。
But when a business is high quality, the market often bids it up to a price that reflects this. 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 you might want to take a peek at this data-rich interactive graph of forecasts for the company.
但是,當企業質量很高時,市場通常會以反映這一點的價格出價。還必須考慮利潤可能增長的速度,相對於當前價格所反映的利潤增長預期。因此,你可能想看看這張數據豐富的公司預測交互式圖表。
Of course Hertz Global Holdings may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
當然,赫茲環球控股可能不是最好的買入股票。因此,您不妨免費查看其他投資回報率高、負債率低的公司的名單。
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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.
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。
譯文內容由第三人軟體翻譯。