Boasting A 25% Return On Equity, Is Avery Dennison Corporation (NYSE:AVY) A Top Quality Stock?
Boasting A 25% Return On Equity, Is Avery Dennison Corporation (NYSE:AVY) A Top Quality Stock?
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 Avery Dennison Corporation (NYSE:AVY), by way of a worked example.
我們最好的投資之一就是投資於自己的知識和技能。因此，本文將通過一個案例來介紹我們如何使用ROE來更好地理解一個企業。我們將通過艾利丹尼森股份有限公司（紐交所: AVY）來介紹ROE的應用。
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. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
對於股東來說，股東回報率（ROE）是一個重要的考慮因素，因爲它告訴股東他們的資本被有效地再投資了多少。換句話說，它是一個衡量公司股東提供的資本回報率的盈利能力比率。
How Is ROE Calculated?
淨資產收益率怎麼計算？
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 Avery Dennison is:
因此，根據上述公式，艾利丹尼森的ROE爲：
25% = US$554m ÷ US$2.2b (Based on the trailing twelve months to March 2024).
25% = 5.54億美元 ÷ 22億美元 （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. That means that for every $1 worth of shareholders' equity, the company generated $0.25 in profit.
“回報”是指過去12個月稅後賺取的金額。這意味着，對於每1美元的股東權益，公司創造了0.25美元的利潤。
Does Avery Dennison Have A Good ROE?
艾利丹尼森的ROE好不好呢？
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Avery Dennison has a better ROE than the average (16%) in the Packaging industry.
確定一個公司的ROE是否良好的一個簡單方法是將其與所處行業的平均水平進行比較。但這種方法的侷限性在於，即使在同一行業分類中，有些公司也可能與其他公司有很大的不同。顯然，從下圖可以看出，艾利丹尼森的ROE要優於包裝行業的平均水平（16%）。
That is a good sign. 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. To know the 2 risks we have identified for Avery Dennison visit our risks dashboard for free.
這是一個好的跡象。但高ROE並不總是意味着高盈利能力。除了淨利潤的變化之外，高ROE也可能是高債務相對於股本的結果，這表明風險。爲了了解我們已爲艾利丹尼森識別出的2種風險，請免費訪問我們的風險儀表板。
How Does Debt Impact ROE?
債務對ROE的影響是怎樣的？
Virtually all companies need money to invest in the business, to grow 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 debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
幾乎所有公司都需要資金來投資業務以增加利潤。資金來源可以是往年的利潤（保留收益），發行新股或借款。在前兩種情況下，ROE將捕捉到使用資本進行增長的情況。在後一種情況下，用於增長的債務將提高收益，但不會影響總股本。因此，借款可以提高ROE，但在像是借來的，需要承擔額外風險的情況下，這就如同在暴風雨中前進。
Avery Dennison's Debt And Its 25% ROE
艾利丹尼森的債務和其25%的ROE
Avery Dennison does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.47. There's no doubt the ROE is impressive, but it's worth keeping in mind that the metric could have been lower if the company were to reduce its debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
艾利丹尼森確實使用了大量的債務來提高回報。它的債務股本比爲1.47。毫無疑問，ROE很令人印象深刻，但值得記住的是，如果公司減少債務，這個指標可能會更低。債務確實帶來額外的風險，因此僅當公司從中獲得一些不錯的回報時才是有價值的。
Summary
總的來說，我們對偉明環保的表現非常滿意。具體而言，我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然，這導致公司的收益大幅增長。但是，最新的行業分析師預測表明，該公司的收益預計將加速增長。
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. If two companies have the same ROE, then I would generally prefer the one with less debt.
ROE是我們可以比較不同公司業務質量的一種方式。能夠在不太依賴債務的情況下實現高ROE的公司通常是高品質的。如果兩家公司的ROE相同，則通常會更喜歡債務較少的那家公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.
但是，roe只是更重要的謎題的一部分，因爲高品質的企業通常以高倍數的盈利交易。考慮利潤增長率，與股票價格反映的預期相比，尤其重要。因此，您可能想要查看這個數據豐富的交互式預測圖表。
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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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？關於內容有所顧慮？直接和我們聯繫。或者發送電子郵件至editorial-team@simplywallst.com。
譯文內容由第三人軟體翻譯。