Boasting A 12% Return On Equity, Is Xinjiang Tianfu Energy Co., Ltd. (SHSE:600509) A Top Quality Stock?
Boasting A 12% Return On Equity, Is Xinjiang Tianfu Energy Co., Ltd. (SHSE:600509) 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. By way of learning-by-doing, we'll look at ROE to gain a better understanding of Xinjiang Tianfu Energy Co., Ltd. (SHSE:600509).
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，以更好地了解新疆天富能源有限公司（SHSE: 600509）。
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 Is ROE Calculated?
ROE 是如何計算的？
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 Xinjiang Tianfu Energy is:
因此，根據上述公式，新疆天富能源的投資回報率爲：
12% = CN¥923m ÷ CN¥7.4b (Based on the trailing twelve months to September 2023).
12% = 9.23億元人民幣 ÷ 74億元人民幣（基於截至2023年9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 CN¥1 worth of equity, the company was able to earn CN¥0.12 in profit.
“回報” 是企業在過去一年中獲得的收入。另一種看法是，每持有價值1元人民幣的股權，公司就能獲得0.12元人民幣的利潤。
Does Xinjiang Tianfu Energy Have A Good ROE?
新疆天富能源的投資回報率好嗎？
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. Pleasingly, Xinjiang Tianfu Energy has a superior ROE than the average (6.1%) in the Electric Utilities industry.
確定公司股本回報率是否不錯的一種簡單方法是將其與該行業的平均水平進行比較。重要的是，這遠非一個完美的衡量標準，因爲各公司在相同的行業分類中差異很大。令人高興的是，新疆天富能源的投資回報率高於電力公用事業行業的平均水平（6.1％）。
That's what we like to see. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. 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 Xinjiang Tianfu Energy visit our risks dashboard for free.
這就是我們喜歡看到的。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。尤其是當一家公司使用高額債務爲其債務融資時，這可能會提高其投資回報率，但高槓杆率會使公司面臨風險。要了解我們爲新疆天富能源確定的兩種風險，請免費訪問我們的風險儀表板。
How Does Debt Impact ROE?
債務如何影響投資回報率？
Companies usually need to invest money to grow their 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. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
公司通常需要投資資金來增加利潤。這些現金可以來自發行股票、留存收益或債務。在前兩個案例中，投資回報率將涵蓋這種資本用於增長的用途。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。因此，使用債務可以提高投資回報率，儘管可以隱喻地說，暴風雨天氣會帶來額外的風險。
Combining Xinjiang Tianfu Energy's Debt And Its 12% Return On Equity
合併新疆天富能源的債務及其12％的股本回報率
Xinjiang Tianfu Energy clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.50. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
新疆天富能源顯然使用大量債務來提高回報，因爲其負債權益比率爲1.50。即使使用了巨額債務，其投資回報率也相當低；在我們看來，這不是一個好結果。債務會增加風險，減少公司未來的選擇，因此您通常希望從使用債務中獲得豐厚的回報。
Conclusion
結論
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. 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.
股本回報率對於比較不同業務的質量很有用。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。如果兩家公司的債務與股權比率大致相同，而一家公司的投資回報率更高，那麼我通常更喜歡投資回報率更高的那家公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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. You can see how the company has grow in the past by looking at this FREE detailed graph of past earnings, revenue and cash flow.
但是投資回報率只是更大難題的一部分，因爲高質量的企業通常以高倍的收益進行交易。相對於當前價格所反映的利潤增長預期，還必須考慮利潤可能的增長速度。您可以通過查看這張免費的過去收益、收入和現金流詳細圖表來了解公司過去的增長情況。
Of course Xinjiang Tianfu Energy 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，新疆天富能源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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