Is China Enterprise Company Limited's (SHSE:600675) 3.6% ROE Better Than Average?
Is China Enterprise Company Limited's (SHSE:600675) 3.6% ROE Better Than Average?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand China Enterprise Company Limited (SHSE:600675).
許多投資者仍在學習分析股票時可能有用的各種指標。本文適用於那些想了解股本回報率（ROE）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中國企業股份有限公司（SHSE: 600675）。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回報率或投資回報率是對公司增值和管理投資者資金的有效性的考驗。簡而言之，它衡量公司相對於股東權益的盈利能力。
How Is ROE Calculated?
ROE 是如何計算的？
ROE can be calculated by using the formula:
ROE 可以通過以下公式計算：
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 China Enterprise is:
因此，根據上述公式，中國企業的投資回報率爲：
3.6% = CN¥614m ÷ CN¥17b (Based on the trailing twelve months to March 2024).
3.6% = 6.14億元人民幣 ÷ 170億元人民幣（基於截至2024年3月的過去十二個月）。
The 'return' refers to a company's earnings 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¥0.04 in profit.
“回報” 是指公司去年的收益。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0.04元人民幣的利潤。
Does China Enterprise Have A Good Return On Equity?
中國企業有良好的股本回報率嗎？
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. 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 China Enterprise has an ROE that is roughly in line with the Real Estate industry average (3.9%).
可以說，評估公司投資回報率的最簡單方法是將其與行業平均水平進行比較。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，中企的投資回報率與房地產行業的平均水平（3.9％）大致持平。
That's neither particularly good, nor bad. 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 true, then it is more an indication of risk than the potential. You can see the 2 risks we have identified for China Enterprise by visiting our risks dashboard for free on our platform here.
這既不是特別好，也不是特別糟糕。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。如果屬實，則與其說是潛在風險，不如說是風險。您可以通過訪問我們的網站查看我們爲中國企業確定的兩種風險 風險儀表板 在我們的平台上免費使用。
How Does Debt Impact Return On Equity?
債務如何影響股本回報率？
Most companies need money -- from somewhere -- 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 use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
大多數公司需要來自某個地方的資金來增加利潤。這些現金可以來自留存收益、發行新股（股權）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，債務的使用將提高回報，但不會改變權益。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 China Enterprise's Debt And Its 3.6% Return On Equity
合併中國企業的債務及其3.6％的股本回報率
China Enterprise clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.42. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
中國企業顯然使用大量債務來提高回報，因爲其負債權益比率爲1.42。相當低的投資回報率和大量使用債務相結合並不是特別有吸引力。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. 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.
股本回報率對於比較不同業務的質量很有用。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. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free report on 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對其進行出價。重要的是要考慮其他因素，例如未來的利潤增長以及未來需要多少投資。因此，我認爲可能值得查看這份關於分析師對公司的預測的免費報告。
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
如果你更願意去另一家公司——一家財務狀況可能優越的公司——那麼千萬不要錯過這份免費的股本回報率高、債務低的有趣公司的名單。
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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。