Is CNO Financial Group, Inc.'s (NYSE:CNO) ROE Of 18% Impressive?
Is CNO Financial Group, Inc.'s (NYSE:CNO) ROE Of 18% Impressive?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' 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. We'll use ROE to examine CNO Financial Group, Inc. (NYSE:CNO), by way of a worked example.
雖然一些投資者已經對財務指標非常熟悉（參考），但這篇文章是爲那些想要了解股東權益回報率（ROE）及其重要性的人準備的。我們將通過工作示例來使用ROE來分析CNO Financial集團有限公司（NYSE:CNO）。
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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東要考慮的關鍵因素之一是淨資產收益率或roe，因爲它告訴他們公司如何有效地重新投資他們的資本。簡單點說，它衡量了公司與股東權益相關的盈利能力。
How To Calculate Return On Equity?
如何計算股東權益報酬率？
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 CNO Financial Group is:
因此，基於上述公式，CNO Financial Group的ROE爲：
18% = US$432m ÷ US$2.4b (Based on the trailing twelve months to June 2024).
18% = 4.32億美元 ÷ 24億美元（基於截至2024年6月的過去12個月）。
The 'return' is the yearly profit. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.18 in profit.
'回報'即爲年利潤。換句話說，公司每擁有$1的淨資產就能創造$0.18的利潤。
Does CNO Financial Group Have A Good ROE?
CNO Financial Group的ROE好嗎？
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. As is clear from the image below, CNO Financial Group has a better ROE than the average (13%) in the Insurance industry.
確定公司是否具有良好的淨資產收益率的一種簡單方法是將其與行業平均水平進行比較。 但需要注意的是，這遠非是一個完美的指標，因爲即使是在同一行業分類中，公司之間也存在顯著差異。 如下圖所示，CNO金融集團的ROE(淨資產收益率)優於保險業的平均水平（13%）。
That's what we like to see. Bear in mind, a high ROE doesn't always mean superior financial performance. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. To know the 2 risks we have identified for CNO Financial Group visit our risks dashboard for free.
這正是我們希望看到的。但請記住，高淨資產收益率並不總是意味着優越的財務業績。特別是當公司利用大量債務來融資，這可能會提高其淨資產收益率，但高槓杆風險也會使公司處於風險之中。要了解我們爲CNO金融集團確定的兩個風險，請免費訪問我們的風險儀表。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), 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. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
公司通常需要投資資金來增加利潤。這些資金可以來自保留收益、發行新股（權益）或債務。在前兩種選擇的情況下，ROE將反映這種用於增長的現金使用情況。在後一種情況下，用於增長的債務將改善回報率，但不會影響總股本。通過這種方式，債務的使用將提高ROE，即使業務的核心經濟模型保持不變。
Combining CNO Financial Group's Debt And Its 18% Return On Equity
結合CNO金融集團的債務和其18%的淨資產回報率
It's worth noting the high use of debt by CNO Financial Group, leading to its debt to equity ratio of 1.86. While its ROE is pretty respectable, the amount of debt the company is carrying currently is not ideal. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
值得注意的是CNO金融集團對債務的高度利用，導致其債務與淨資產比率爲1.86。雖然其淨資產回報率相當可觀，但目前公司負債的金額並不理想。投資者應該仔細考慮如果公司不能輕易借款，可能會如何表現，因爲信貸市場會隨着時間的推移而發生變化。
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 when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREE visualization of analyst forecasts for the company.
但是，當一個業務質量高的公司時，市場通常會將其競拍到反映這一點的價格。利潤增長率相對於股票價格反映的預期，是特別重要考慮的因素。因此，您可能想要查看分析師對該公司的預測的這個免費可視化。
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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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。
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