Can Bowhead Specialty Holdings Inc. (NYSE:BOW) Improve Its Returns?
Can Bowhead Specialty Holdings Inc. (NYSE:BOW) Improve Its Returns?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity 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. We'll use ROE to examine Bowhead Specialty Holdings Inc. (NYSE:BOW), by way of a worked example.
雖然一些投資者對財務指標已經非常熟悉（致敬），但這篇文章是爲那些想要了解股東權益回報率（ROE）及其重要性的人準備的。我們將通過一個具體的例子來使用ROE來分析Bowhead Specialty Holdings Inc.（紐交所：BOW）。
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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
淨資產回報率或ROE是用於評估公司管理層如何有效利用公司資本的關鍵指標。簡而言之，ROE顯示了每一美元在股東投資方面創造的利潤。
How Do You Calculate Return On Equity?
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
股東權益回報率 = 淨利潤（來自持續運營）÷ 股東權益
So, based on the above formula, the ROE for Bowhead Specialty Holdings is:
根據上述公式，Bowhead Specialty Holdings的ROE爲：
8.1% = US$29m ÷ US$365m (Based on the trailing twelve months to September 2024).
8.1% = 2900萬美元 ÷ 36500萬美元（基於截至2024年9月的過去十二個月）。
The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.08 in profit.
「回報」是指過去十二個月的利潤。這意味着在每1美元的股東權益下，公司產生了0.08美元的利潤。
Does Bowhead Specialty Holdings Have A Good ROE?
Bowhead Specialty Holdings的ROE好嗎？
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. If you look at the image below, you can see Bowhead Specialty Holdings has a lower ROE than the average (14%) in the Insurance industry classification.
通過將公司的ROE與行業平均水平進行比較，我們可以快速了解其表現如何。這種方法的侷限性在於，一些公司與其他公司甚至在同一行業分類中相差很大。如果您查看下方的圖像，您會看到Bowhead Specialty Holdings的ROE低於保險行業分類的平均水平（14%）。
Unfortunately, that's sub-optimal. 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.
不幸的是，這是次優的。儘管我們認爲較低的roe仍可能意味着公司有機會通過使用槓桿改善回報，前提是公司現有債務水平較低。而高負債的公司roe低就是另一回事，並且在我們看來是一項風險投資。
How Does Debt Impact Return On Equity?
債務如何影響淨利潤回報率？
Companies usually need to invest money 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 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.
公司通常需要投資資金來增加利潤。這些資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，ROE將反映現金在業務投資中的使用。在後一種情況下，用於增長的債務會提高回報，但不會影響總股本。通過這種方式，債務的使用將提高ROE，即使業務的核心經濟狀況保持不變。
Combining Bowhead Specialty Holdings' Debt And Its 8.1% Return On Equity
結合Bowhead Specialty Holdings的債務和8.1%的ROE
Bowhead Specialty Holdings is free of net debt, which is a positive for shareholders. Even though I don't think its ROE is that great, I think it's very respectable when you consider it has no debt. After all, with cash on the balance sheet, a company has a lot more optionality in good times and bad.
Bowhead Specialty Holdings沒有淨債務，這對股東來說是個好消息。儘管我認爲它的ROE並不算很優秀，但考慮到它沒有債務，這個收益率還是相當可觀的。畢竟，擁有現金的公司在好的時候和壞的情況下都有更多的選擇權。
Conclusion
結論
Return on equity is useful for comparing the quality of different businesses. In our books, the highest quality companies have high return on equity, despite low debt. 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.
對於比較不同業務質量的公司，ROE很有用。在我們的書中，最高質量的公司具有高ROE，儘管其債務較低。如果兩家公司的債務與股本比例大致相同，並且其中一家公司的ROE更高，我通常更喜歡ROE更高的那家公司。
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 you might want to check this FREE visualization of analyst forecasts for the company.
但是，當一項業務質量高時，市場通常將其價格炒得很高，這反映了這一點。考慮其他因素也很重要，例如未來利潤增長——以及未來需要多少投資。因此，您可能想查看這個免費的分析師預測可視化。
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.
如果你更願意查看另一家公司——一家潛在的財務狀況優秀的公司——那麼一定不要錯過這份有趣公司的免費列表，這些公司有高股本回報率和低負債。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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？對內容有疑慮？請直接與我們聯繫。或者，發送電子郵件至 editorial-team (at) simplywallst.com。
這篇來自Simply Wall St的文章是一般性的。我們根據歷史數據和分析師預測提供評論，採用無偏見的方法，我們的文章並不旨在提供財務建議。它不構成對任何股票的買入或賣出建議，也未考慮到您的目標或財務狀況。我們旨在爲您提供以基本數據驅動的長期分析。請注意，我們的分析可能未考慮最新的價格敏感公司公告或定性材料。Simply Wall St在提到的任何股票中均沒有持倉。
譯文內容由第三人軟體翻譯。
