Is Prudential Financial, Inc.'s (NYSE:PRU) 7.4% ROE Worse Than Average?
Is Prudential Financial, Inc.'s (NYSE:PRU) 7.4% ROE Worse 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 Prudential Financial, Inc. (NYSE:PRU).
許多投資者仍在了解有用於分析股票時的各種指標。本文是爲那些想了解股東權益回報率（ROE）的人準備的。爲了使課堂更務實，我們將運用ROE來更好地了解保德信金融股份有限公司（NYSE:紐交所:PRU）。
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.
股東權益回報率ROE是測試公司增值能力和管理股東投資的有效性的指標。更簡單地說，它衡量公司在股東權益中的盈利能力。
How Do You Calculate Return On Equity?
怎樣計算ROE?
ROE can be calculated by using the formula:
淨資產收益率可以使用以下公式進行計算：
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 Prudential Financial is:
因此，根據上述公式，保德信金融的ROE爲:
7.4% = US$2.2b ÷ US$29b (Based on the trailing twelve months to March 2024).
7.4% = 22億美元 ÷ 290億美元（基於追蹤到2024年3月的十二個月）。
The 'return' is the income the business earned over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.07.
“回報”是業務在過去一年中賺取的收入。這意味着，對於股東的每1美元投資，公司可以創造0.07美元的利潤。
Does Prudential Financial Have A Good ROE?
保德信金融的ROE怎麼樣？
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Prudential Financial has a lower ROE than the average (13%) in the Insurance industry classification.
判斷公司股東權益回報率是否良好的一種簡單方法是將其與行業平均值進行比較。這種方法的侷限性在於，即使在同一行業分類中，有些公司也與其他公司有很大不同。如果你看一下下面的圖像，你可以看到保德信金融的ROE低於保險業分類的平均值（13%）。
That's not what we like to see. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. A high debt company having a low ROE is a different story altogether and a risky investment in our books.
這不是我們想看到的。儘管我們認爲較低的ROE仍然意味着一家公司有利用槓桿提高其回報的機會，前提是其現有債務水平較低。高債務公司ROE低則完全不同，是我們書中的一項風險投資。
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. 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 use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used.
幾乎所有公司都需要資金來投資業務、提高利潤。投資的現金可以來自前年的利潤（留存收益）、發行新股或借款。在前兩種選擇的情況下，ROE將反映出資金用於成長的情況。在後一種情況下，債務的使用將提高回報，但不會改變股權。這將使ROE看起來比不使用債務要好。
Combining Prudential Financial's Debt And Its 7.4% Return On Equity
結合保德信金融的債務和其7.4%的股東權益回報率
It's worth noting the high use of debt by Prudential Financial, leading to its debt to equity ratio of 1.27. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. 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.
值得注意的是，保德信金融使用了大量的債務，導致其負債股本比率爲1.27。由於ROE相對較低且債務使用顯著，目前很難對這家企業感到興奮。投資者應認真考慮一家公司如果難以輕易借款會表現如何，因爲信貸市場隨着時間的推移會發生變化。
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 around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
ROE是我們可以比較不同公司業務質量的一種方式。沒有負債可以實現高ROE的公司可以被認爲是高質量的公司。如果兩家公司的負債與股本約同，並且一家公司的ROE更高，則我通常更喜歡ROE更高的公司。
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 take a peek at this data-rich interactive graph of forecasts for the company.
但是，當企業屬於高質量時，市場經常將其標價以反映其優勢。折現率的盈利增長率與股票價格中體現的預期相比，是需要特別考慮的。因此，您可能需要查看這份數據豐富的交互式圖表，以了解該公司的預測。
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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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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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論，只使用公正的方法論，我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議，也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意，我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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譯文內容由第三人軟體翻譯。