NewMarket Corporation (NYSE:NEU) Delivered A Better ROE Than Its Industry
NewMarket Corporation (NYSE:NEU) Delivered A Better ROE Than Its Industry
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). By way of learning-by-doing, we'll look at ROE to gain a better understanding of NewMarket Corporation (NYSE:NEU).
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。通過邊幹邊學的方式，我們將研究投資回報率，以更好地了解紐馬克特公司（紐約證券交易所代碼：NEU）。
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 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。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 Do You Calculate Return On Equity?
你如何計算股本回報率？
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 NewMarket is:
因此，根據上述公式，NewMarket的投資回報率爲：
35% = US$399m ÷ US$1.2b (Based on the trailing twelve months to March 2024).
35% = 3.99億美元 ÷ 12億美元（基於截至2024年3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 $0.35 in profit.
“回報” 是過去十二個月的利潤。對此進行概念化的一種方法是，該公司每擁有1美元的股東資本，就能獲得0.35美元的利潤。
Does NewMarket Have A Good ROE?
NewMarket 的投資回報率不錯嗎？
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. As you can see in the graphic below, NewMarket has a higher ROE than the average (10%) in the Chemicals industry.
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。如下圖所示，NewMarket的投資回報率高於化工行業的平均水平（10％）。
That is a good sign. With that said, a high ROE doesn't always indicate high profitability. 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 NewMarket by visiting our risks dashboard for free on our platform here.
這是一個好兆頭。話雖如此，高投資回報率並不總是表示高盈利能力。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。您可以訪問我們的網站，查看我們爲NewMarket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 issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. 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。這些現金可以來自發行股票、留存收益或債務。在第一和第二種情況下，投資回報率將反映現金用於企業投資的情況。在後一種情況下，債務的使用將提高回報，但不會改變股權。以這種方式，債務的使用將提高投資回報率，儘管該業務的核心經濟學保持不變。
Combining NewMarket's Debt And Its 35% Return On Equity
合併NewMarket的債務及其35％的股本回報率
It's worth noting the high use of debt by NewMarket, leading to its debt to equity ratio of 1.11. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
值得注意的是，NewMarket大量使用債務，導致其負債權益比率爲1.11。儘管毫無疑問，其投資回報率令人印象深刻，但如果該公司以較低的債務實現這一目標，我們會給我們留下更深刻的印象。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 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。
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. 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 this detailed graph of past earnings, revenue and cash flow.
話雖如此，儘管投資回報率是衡量業務質量的有用指標，但你必須考慮一系列因素來確定購買股票的正確價格。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，我認爲可能值得免費查看這張過去收益、收入和現金流的詳細圖表。
Of course NewMarket 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，NewMarket可能不是最值得購買的股票。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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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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。