Target Corporation (NYSE:TGT) Delivered A Better ROE Than Its Industry
Target Corporation (NYSE:TGT) Delivered A Better ROE Than Its Industry
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity 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. To keep the lesson grounded in practicality, we'll use ROE to better understand Target Corporation (NYSE:TGT).
我們能做的最好的投資之一就是提升自己的知識和技能。考慮到這一點，本文將介紹如何利用淨資產收益率（roe）更好地了解一個企業。爲了使課程更加貼近實際，我們將使用roe更好地了解塔吉特公司（紐交所：tgt）。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE，即淨資產收益率，測試一家公司有效增加價值和管理股東資金的能力。換句話說，它揭示了公司將股東投資轉化爲利潤的成功程度。
How To Calculate Return On Equity?
如何計算股東權益報酬率？
The formula for return on equity is:
權益回報率的計算公式是：
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 Target is:
因此，根據上述公式，塔吉特的roe爲：
31% = US$4.5b ÷ US$14b (Based on the trailing twelve months to August 2024).
31% = 450億美元 ÷ 1400億美元（基於截至2024年8月的過去十二個月）。
The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.31 in profit.
「回報率」是指過去12個月的利潤。這種概念化的方法是，對於每1美元的股東資本，公司賺了0.31美元的利潤。
Does Target Have A Good Return On Equity?
Target的股東權益回報率如何？
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. Pleasingly, Target has a superior ROE than the average (12%) in the Consumer Retailing industry.
通過將一家公司的roe與其行業平均值進行比較，我們可以快速衡量其表現。這種方法的侷限性在於，有些公司與其他公司有很大不同，即使在同一行業分類中也是如此。令人高興的是，Target在消費零售行業的平均roe（12%）之上，表現出色。
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. You can see the 2 risks we have identified for Target by visiting our risks dashboard for free on our platform here.
這正是我們想看到的。請記住，高roe並不總是意味着超越的財務表現，尤其是當公司使用高額負債來融資其債務時，這可能會提高其roe，但高槓杆會使公司面臨風險。您可以免費訪問我們平台上的風險儀表板，了解我們爲Target確定的兩個風險。
Why You Should Consider Debt When Looking At ROE
爲什麼在觀察ROE時你應該考慮債務問題？
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. 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 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.
公司通常需要投資來增加利潤。投資所需的資金可以來自前一年的利潤（留存收益），發行新股或借款。在前兩種選擇的情況下，roe將反映出資金的使用，用於增長。在後一種情況下，爲增長所需的債務將提升回報率，但不會影響股東權益。這會使roe看起來比不使用債務時更好。
Combining Target's Debt And Its 31% Return On Equity
結合Target的債務和其31%的ROE
Target clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.07. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. 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.
Target顯然使用大量債務來提升回報率，因爲其資產負債比爲1.07。雖然毫無疑問其ROE令人印象深刻，但如果公司能夠通過更低的債務實現這一目標，我們會更加印象深刻。投資者應仔細考慮，如果一家公司無法如此輕鬆地借款，其表現可能會如何，因爲信貸市場隨時間變化。
Conclusion
結論
Return on equity is one way we can compare its business quality of different companies. In our books, the highest quality companies have high return on equity, despite low debt. 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.
股本收益率是我們可以比較不同公司業務質量的一種方式。在我們書中，具有高股本收益率的最高質量公司，儘管負債率低。如果兩家公司的負債與股權水平大致相同，並且其中一家公司的ROE更高，我通常會更喜歡ROE更高的公司。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company.
話雖如此，雖然ROE是業務質量的有用指標，但您需要研究各種因素來確定購買股票的正確價格。利潤增長速度與反映在股票價格中的預期是特別重要的考慮因素。因此，我認爲值得查看該公司分析師預測的免費報告。
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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