New China Life Insurance Company Ltd. (SHSE:601336) Has A ROE Of 8.3%
New China Life Insurance Company Ltd. (SHSE:601336) Has A ROE Of 8.3%
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. To keep the lesson grounded in practicality, we'll use ROE to better understand New China Life Insurance Company Ltd. (SHSE:601336).
儘管一些投資者已經精通財務指標（帽子提示），但本文適用於那些想了解股本回報率（ROE）及其重要性的人。爲了使課程以實用爲基礎，我們將使用投資回報率來更好地了解新華人壽保險股份有限公司（SHSE: 601336）。
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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回報率或投資回報率是股東需要考慮的重要因素，因爲它可以告訴他們資本再投資的有效性。簡而言之，它用於評估公司相對於其股權資本的盈利能力。
How To Calculate Return On Equity?
如何計算股本回報率？
The formula for return on equity is:
股本回報率的公式是：
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 New China Life Insurance is:
因此，根據上述公式，新中國人壽保險的投資回報率爲：
8.3% = CN¥8.7b ÷ CN¥105b (Based on the trailing twelve months to December 2023).
8.3% = 8.7億元人民幣 ÷ 105億元人民幣（基於截至2023年12月的過去十二個月）。
The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.08 in profit.
“回報” 是指公司去年的收益。將其概念化的一種方法是，公司每擁有1元人民幣的股東資本，就能獲得0.08元人民幣的利潤。
Does New China Life Insurance Have A Good ROE?
新中國人壽有良好的投資回報率嗎？
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. The image below shows that New China Life Insurance has an ROE that is roughly in line with the Insurance industry average (9.3%).
通過將公司的投資回報率與其行業平均水平進行比較，我們可以快速衡量其表現如何。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。下圖顯示，新華人壽的投資回報率與保險行業的平均水平（9.3％）大致持平。
That isn't amazing, but it is respectable. While at least the ROE is not lower than the industry, its still worth checking what role the company's debt plays as high debt levels relative to equity may also make the ROE appear high. If so, this increases its exposure to financial risk. You can see the 2 risks we have identified for New China Life Insurance by visiting our risks dashboard for free on our platform here.
這並不奇怪，但值得尊敬。儘管至少投資回報率不低於該行業，但仍值得檢查該公司的債務起了什麼作用，因爲相對於股權的高債務水平也可能使投資回報率顯得很高。如果是這樣，這會增加其金融風險敞口。您可以通過訪問我們的網站查看我們爲新中國人壽保險確定的兩種風險 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 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.
幾乎所有公司都需要資金來投資該業務，以增加利潤。這些現金可以來自發行股票、留存收益或債務。就第一和第二種選擇而言，投資回報率將反映現金的使用情況，以實現增長。在後一種情況下，用於增長的債務將提高回報，但不會影響總淨值。通過這種方式，債務的使用將提高投資回報率，儘管業務的核心經濟保持不變。
Combining New China Life Insurance's Debt And Its 8.3% Return On Equity
合併新華人壽的債務及其8.3％的股本回報率
It's worth noting the high use of debt by New China Life Insurance, leading to its debt to equity ratio of 1.27. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
值得注意的是，新華人壽大量使用債務，導致其負債權益比率爲1.27。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。債務確實會帶來額外的風險，因此只有當公司從中獲得可觀的回報時，債務才是真正值得的。
Conclusion
結論
Return on equity is one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回報率是我們可以比較不同公司的業務質量的一種方式。能夠在沒有債務的情況下實現高股本回報率的公司可以被視爲高質量的企業。如果兩家公司的投資回報率相同，那麼我通常更喜歡負債較少的公司。
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，當企業質量很高時，市場通常會以反映這一點的價格出價。與股票價格所反映的預期相比，利潤增長率尤其值得考慮。因此，您可能需要查看該公司的分析師預測的免費可視化效果。
Of course New China Life Insurance 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，新中國人壽保險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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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。