Should You Be Impressed By American States Water Company's (NYSE:AWR) ROE?
Should You Be Impressed By American States Water Company's (NYSE:AWR) ROE?
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 American States Water Company (NYSE:AWR).
許多投資者仍在學習有用的股票分析指標，這篇文章是爲那些想學習股東權益回報率（roe）的人準備的。透過實踐來學習，我們將研究roe，以更好地理解美國州立水務公司（紐交所:awr）。
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.
淨資產收益率（roe）是衡量公司經營管理層如何有效利用公司資本的關鍵指標。換言之，它是一種利潤率，衡量由公司股東提供的資本的回報率。
How Is ROE Calculated?
淨資產收益率怎麼計算？
The formula for return on equity is:
權益回報率的計算公式是：
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 American States Water is:
因此，根據上述公式，美國州立水務的roe爲：
14% = US$114m ÷ US$800m (Based on the trailing twelve months to March 2024).
14% = 1.14億美元 ÷ 8億美元（基於截至2024年3月的過去十二個月）。
The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.14.
“返回”是每年的利潤。這意味着，公司爲每美元股東的投資創造了0.14美元的利潤。
Does American States Water Have A Good Return On Equity?
美國州立水務的股東權益回報率如何？
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 is clear from the image below, American States Water has a better ROE than the average (9.6%) in the Water Utilities industry.
通過將公司的roe與行業平均水平進行比較，我們可以快速測量它的好壞。但是這種方法的侷限性在於，即使在同一行業分類中，有些公司的情況也會有很大不同。從下面的圖中可以看出，美國州立水務的roe比水務行業的平均值（9.6%）好。
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. Our risks dashboardshould have the 2 risks we have identified for American States Water.
這是一個好跡象。但是，高roe並不總是表示高盈利能力。尤其是當公司使用高比例的負債來融資時，可能會提高它的roe，但高槓杆會使公司面臨風險。我們的風險儀表板應該列出了我們爲美國州立水務確定的2個風險。
How Does Debt Impact ROE?
債務對ROE的影響是怎樣的？
Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), 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.
幾乎所有公司都需要資金來投資業務以增加利潤。這筆資金可以來自留存收益、發行新股票（股權）或債務。在前兩種情況下，ROE將反映這些用於投資業務的資金的使用情況。在後一種情況下，債務的使用將提高回報，但不會改變股本。通過這種方式，儘管企業的核心經濟狀況保持不變，但債務的使用將提高ROE。
American States Water's Debt And Its 14% ROE
美國州立水務的負債和14%的roe
American States Water does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.14. While its ROE is respectable, it is worth keeping in mind that there is usually a limit as to how much debt a company can use. 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.
美國州立水務確實使用大量負債來提高收益。它的負債股本比爲1.14。雖然它的roe值尚可，但值得注意的是，公司可以使用的負債總額通常是有限的。投資者應仔細考慮，如果公司不能輕鬆借貸，它的表現將如何，因爲信貸市場確實會隨時間而變化。
Summary
總的來說，我們對偉明環保的表現非常滿意。具體而言，我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然，這導致公司的收益大幅增長。但是，最新的行業分析師預測表明，該公司的收益預計將加速增長。
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回報率是評估企業生成利潤並將其返還給股東能力的有用指標。能夠在不使用過多債務的情況下實現高回報率的公司通常是高質量的公司。如果兩家公司具有相同的ROE，那麼我通常會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 I think it may be worth checking this free report on analyst forecasts for the company.
但是，當業務質量較高時，市場通常會以反映這一點的價格競標。相對於股票價格所反映的期望，利潤增長率尤其重要。因此，我認爲不妨查看有關公司分析師預測的免費報告。
Of course American States Water 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，美國州立水務可能不是最佳的股票買入選擇。因此，您可能希望查看這個免費收藏的其他高roe和低負債的公司列表。
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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.
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者，發送電子郵件至editorial-team (at) simplywallst.com。
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
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者發送電子郵件至editorial-team@simplywallst.com。
譯文內容由第三人軟體翻譯。